Section: Barbara Adams
Headline: The Nokia Effect
Source: The Economist
Abstract: An article on the front page of The Economist’s website drew my attention recently. Titled “The Nokia effect”, it explains how Finland’s economy is heavily reliant upon Nokia. So much in fact, that from 1998 to 2007 Nokia contributed a quarter of Finnish growth and made up 30% of the country’s spending on research and development. They also paid 23% of all Finnish corporate taxes. Other countries have similar reliance on companies to sustain their economy, but none are as significant as Nokia and Finland. There seem to be pros and cons to this relationship but since Nokia’s share price has declined 90% since 2007, it directly affects the Finnish economy. This means that Finland is not contributing to technological and design innovation as they once were and raises concern.
Global Issue: Finance and economics
Primary Design Lens: Sustainable Design
Secondary Design Lens: Innovation and Economic Development