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Creative destruction and creative resilience: Restructuring of the Nokia dominated high‐tech sector in the Oulu region

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  • Jaakko Simonen
  • Johannes Herala
  • Rauli Svento

Abstract

The Oulu region, a globally recognized hub of mobile technology development in Northern Finland, provides a textbook example of how the various features of an innovation ecosystem can cause serious problems for regional development when a region faces a shock. The Oulu region is also an interesting example of how the effects of shock can be alleviated through creative actions and effective regional policy. In this paper, we develop a framework for analysing resilience using creativeness as the key element. We contribute to the literature by showing how this framework can be used in the operation and management of the regions hit by creative destruction types of shocks. We argue that the dynamic process that Oulu has gone through, in which obsolete and unproductive business activities have been replaced by new fields of technology and knowledge, can clearly be compared in many ways with Schumpeter's description of “creative destruction.” We call this dynamic process creative resilience. We identify three elements as the core of creative resilience; knowledge creation, entrepreneurship and community spirit. Our paper will show how they materialized in the Oulu region. La región de Oulu en el norte de Finlandia, un centro de desarrollo reconocido mundialmente vinculado a la tecnología de teléfonos celulares, constituye un ejemplo clásico de cómo las diversas características de un ecosistema de innovación pueden causar graves problemas para el desarrollo regional cuando una región se enfrenta a una conmoción. La región de Oulu es también un ejemplo interesante de la forma en que los efectos de las conmociones pueden aliviarse mediante medidas creativas y una política regional eficaz. En este documento se desarrolla un marco para analizar la resiliencia, partiendo de la creatividad como elemento clave. El artículo contribuye a la literatura mostrando cómo se puede utilizar este marco en el funcionamiento y la gestión de las regiones afectadas por conmociones de destrucción creativa. Se sostiene que el proceso dinámico por el que ha pasado Oulu, en el que las actividades comerciales obsoletas e improductivas han sido reemplazadas por nuevos campos de la tecnología y el conocimiento, puede compararse claramente en muchos sentidos con la descripción de Schumpeter de “destrucción creativa”. A este proceso dinámico se le llama aquí resiliencia creativa. Se identifican tres elementos como la base de la resiliencia creativa: la creación de conocimiento, el espíritu emprendedor empresarial y el espíritu comunitario. El artículo muestra cómo tomaron forma estos elementos en la región de Oulu. フィンランド北部のオウル(Oulu)郡では、世界的に知られているモバイル・テクノロジー開発の中心地であるが、ある地域が危機に直面したときに、イノベーションエコシステムの様々な特徴がどのように地域開発に深刻な問題を生じさせうるかを示す典型的な例が認められる。オウル郡の事例は、創造的な対応と実効性のある地域政策を通じてどのように危機の影響を緩和させているかについても注目すべきものである。本稿では、創造性を主な要素として用いて、レジリエンスを分析するフレームワークを作成する。本稿の寄与は、創造的破壊タイプの危機に襲われた地域の運営と管理において、このフレームワークをどのように使うことができるかを示すことである。オウル郡が辿った変化の過程では、時代遅れの非生産的なビジネス活動が技術と知識という新しい分野に取って代わられたが、その過程は多くの点において、Schumpeterが提唱した創造的破壊にはっきりとなぞらえることができるものである。我々はこの変化の過程をcreative resilience(創造的レジリエンス)と呼ぶ。creative resilienceの中核を成す3つの要素は、knowledge creation(知識の創造)、アントレプレナーシップ、community spirit(コミュニティの精神)であることを確認する。本稿では、オウル郡においてこの3つの要素がどのように具現化されているかを示す。

Suggested Citation

  • Jaakko Simonen & Johannes Herala & Rauli Svento, 2020. "Creative destruction and creative resilience: Restructuring of the Nokia dominated high‐tech sector in the Oulu region," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 931-953, October.
  • Handle: RePEc:bla:rgscpp:v:12:y:2020:i:5:p:931-953
    DOI: 10.1111/rsp3.12267
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    References listed on IDEAS

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    2. Tapio Riepponen & Mikko Moilanen & Jaakko Simonen, 2023. "Themes of resilience in the economics literature: A topic modeling approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(2), pages 326-356, April.
    3. Huiwen Gong & Robert Hassink & Juntao Tan & Dacang Huang, 2020. "Regional Resilience in Times of a Pandemic Crisis: The Case of COVID‐19 in China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(3), pages 497-512, July.
    4. Natalia Kuosmanen & Timo Kuosmanen, 2024. "Inter-industry and intra-industry switching as sources of productivity growth: structural change of Finland’s ICT industries," Journal of Productivity Analysis, Springer, vol. 61(2), pages 107-120, April.
    5. Yannis Psycharis & Anastasia Panori & Dimitrios Athanasopoulos, 2022. "Public Investment and Regional Resilience: Empirical Evidence from the Greek Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 113(1), pages 57-79, February.
    6. Mirella Schrijvers & Niels Bosma & Erik Stam, 2022. "Entrepreneurial Ecosystems and Structural Change in European Regions," Working Papers 2202, Utrecht School of Economics.
    7. Li, Xiaolin & Zhang, Mengjie & Liu, Weiwei & Wang, Ziyue, 2024. "The impact of entrepreneurial co-founders' support on founders' entrepreneurial resilience in the high-tech industry: The roles of perceived digital technology and perceived failure-tolerant climate," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    8. Axelle Arquié & Thomas Grjebine, 2024. "Are Mass Layoffs Individually Costly But Socially Beneficial?," Working Papers 2024-03, CEPII research center.
    9. Agnė Žičkienė & Rasa Melnikienė & Mangirdas Morkūnas & Artiom Volkov, 2022. "CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment," Sustainability, MDPI, vol. 14(17), pages 1-24, August.

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