To discover successful clusters researchers studied general local spatial-economic conditions, cluster specific conditions and organizing capacity and the importance of all these factors. Focus was put on studying networking and co-operation between and within all the relevant actors in the ICT cluster that is the private sector, different knowledge institutes and the public sector. In addition the purpose was to find and assess the possibilities of local public policy to promote the success of local ICT cluster. The study was mainly based on interviews of local companies, knowledge institutes and public sector officials.

Macro-Economic and Urban Trends in Europe's Information Society (MUTEIS) is a research project financed by the European Commission. There are four countries selected for this research: Finland, Ireland, the Netherlands and Sweden. In each country the role of ICT is studied in two urban regions. One is more a core region and the other a peripheral region that has found a specific 'urban niche' in the Information Society. Regional analyses of the project are conducted by national partners of the MUTEIS project.

In the Finnish case the selected areas to be studied are the Helsinki region and the Oulu region. This report by Janne Tukiainen is part of MUTEIS project which analyses the ICT clusters in the selected regions.

For this study a total of 25 interviews were made. Fifteen companies, five knowledge institutes and four public sector organizations were included in the interviews. Interviews were made in year 2002 in Helsinki and Espoo.

All the knowledge institute and public organization interviewees as well as 11 of the company representatives were chosen based on recommendations of researchers familiar with the local ICT sector and other interviewees. Four companies, one small company from software, hardware, telecommunication and content fields each, were chosen randomly. The interviews were semi structured.

To complement this information, also statistical data and existing literature is utilized.

Macro-Economic and Urban Trends in Europe's Information Society, MUTEIS.

There is a large and successful ICT cluster in the Helsinki Region. It amounts to about half of the total ICT sector in Finland in many measures. The ICT cluster is very important for the region's economy.

The future of the cluster is likely to be bright although it is not anymore or will easily be a global leader. The sector's dependency on Nokia is not a risk in a long run as know-how remains in Finland regardless of decisions of Nokia. There is a critical mass present and thus the cluster develops on its own.

Human resources are the most important input in ICT sector and thus for most of the interviewed companies the local education was the most important reason for locating in the region. The local education infrastructure is of high quality, and the foremost educational institute in its importance to the ICT sector is Helsinki University of Technology. Education institutes should utilize private sector more as lecturers for example. Supply of high quality work force is still lower than demand. Supply can be increased domestically or by attracting foreigners. There are problems with increasing the amount of ICT students as it will affect the quality of student material, and thus job seekers become more varied in their skill level, which in turn increases the search costs of labour. The problem with universities is the lack of training in commercial skills and project management. The government should make it easier for all workers and especially ICT workers outside EU to come to Finland.

City of Helsinki Urban Facts, Research Unit
Mr. Ilkka Susiluoto, tel. +358 9 169 3688

14/11/2002

Janne Tukiainen

research

Urban Policy > Economy knowledge & employment > Urban economy

Specific sectors