Pasi Pyöriä (pasi.pyoria@uta.fi) Knowledge Economy and New Social Risks Current research project funded by the Academy of Finland: Flexible Work Arrangements in Knowledge-Intensive Firms Kalevi Sorsa Foundation 30.9.2010
Tampere a post-industrial city? Tampere used to be a typical industrial city today there is only one traditional factory left in the city centre Tampere has a dual focus: ICTs and R&D oriented technology industries The presence of two universities has been vital for regional development International enterprises in the Tampere region: Nokia, Metso, UPM, Sandvik Mining and Construction, Tieto, Fujitsu
Understanding Work in the Age of Information: The Finnish Model of an Information Society. (VDM Verlag 2007) On-line version available at: http://acta.uta.fi/english
Table of Contents 1. Introduction 2. The Finnish Information Society 3. The Rise of Knowledge Work 4. Knowledge Work Teams 5. Distributed Work Arrangements 6. The Limits of Teams and Distributed Groups 7. Lessons from Finland Why is it that a small state such as Finland has evolved into a competitive knowledge economy?
Creating, using and communicating knowledge Fritz Machlup: The Production and Distribution of Knowledge in the United States (1962) Peter Drucker: The Age of Discontinuity (1969) Daniel Bell: The Coming of Post- Industrial Society (1973) Marc Porat and Michael Rubin: The Information Economy (1977) The economist Fritz Machlup 1902 1983
Knowledge work requires Extensive formal education and continuous on-the-job learning Transferable skills Working with abstract knowledge and symbols (e.g., design and planning of production processes) Teamwork and collaborative problem-solving Management skills
Information occupations in Finland in 1970 2004 (%). 50 45 40 35 30 25 20 15 10 5 0 1970 1980 1985 1989 1995 2000 2001 2002 2003 2004 Source: OECD (1970), Statistics Finland (1980 2004).
Have we seen the limits of growth in knowledge work? 1. In Finland the number of jobs that involve creating new knowledge has doubled between 1980 (10 %) and 2004 (20 %) these include experts in R&D, engineering, health care, education, marketing, financial services etc. 2. Due to increasing qualification demands the labour market has become more selective than ever before
In no other European democracy has the progression from an essentially agrarian society to a service economy been compressed into a mere four decades. Finland, it seems, has become a typical postindustrial state in the lifetime of many Winter War veterans. (David Arter 1989) Arter, David (1989) Finland: A Typical Post-industrial State? In Engman, Max & Kirby, David Eds. (1989) Finland: People, Nation, State. Pp. 227 243. London, Hurst & Company.
The constituents of the Finnish information society I SYSTEMATIC HIGH-TECH FOCUS Heavy investment in research and development R&D expenditure rose from a low 1.8 % in 1989 to 3.2 % in 1999 Today Finland spends over 3.5 % of its GDP in R&D
The constituents of the Finnish information society II BROAD CO-OPERATION AMONG 1. business enterprises 2. publicly funded research institutes 3. policy makers
Nokia E7 Communicator collaboration with local research institutions
The constituents of the Finnish information society III WELFARE STATE MECHANISMS In the 1960s, following other Nordic countries, Finland began its project of building a democratic welfare state Although the expansion of welfare state mechanisms ended in the 1990s, universalism and democracy still remain the guiding socio-political principles
Key challenges for the future 1. Unemployment 2. Labour shortage 3. Labour market polarization 4. Quality of working life 5. Income differences and debt 6. Demographic change 7. Flawed immigration policy 8. Quality of (basic level) education 9. Intensifying global competition 10. Loss of national togetherness
The Information Society and the Welfare State According to Castells, Finland has managed to combine competitive economy with welfare state mechanism Castell also argues that Finland has been a pioneer in ICTs and this explains Finland s economic success Castells idea is simple and appealing, but it is also false, since all successful first-mover advantages can easily deteriorate into first-mover disadvantages. (Dan Steinbock). Castells, Manuel & Himanen, Pekka (2002) The Information Society and the Welfare State. The Finnish Model. Oxford University Press.
Thank You! Questions, comments?