This KNOGG report analyses the role of Transnational Corporations in the small European countries and synthesises their importance in generating spillovers. For dissemination of technology it is important to build and/or increase the efficiency of national innovation systems and strengthen the...

The paper presents an overview of issues related to standardization in the European transportation market. The paper identifies current trends in the European transportation policy: deregulation in service markets, horizontal integration of infrastructures/networks, and vertical disintegration...

The relationship between product market competition (PMC) and innovative activity has attracted the attention of many economists lately. In this study we elaborate the theory of Aghion et al. (1997, 2001) of an inverted-U relationship between competition and innovations. We provide a theoretical...

In this paper we explore how the environment offered by institutions influences long-run growth. In order for the estimation results to be trustworthy we control the reliability of the estimates in several ways. Firstly, we include the lagged level of output per worker in the model to control...

This report reviews the Finnish science, technology and innovation (STI) policies. The structure and actors of national innovation system (NIS) are described shortly as well as the functioning of education system. The performance of the Finnish STI policies is evaluated by referring to...

Low aggregate investment in Finland has been argued to merely reflect structural change to an innovation economy, with high R&D levels adequately compensating for reduced physical investment. This paper briefly reviews the issues and discusses the severity and persistence of the shortage....

This paper looks at the role of network effects in telecommunications markets. Network effects are said to exist when an existing user of a network benefits from any new user to the network. Even the expectation of a large network will positively influence users' willingness to pay. After the...

In the Kyoto Protocol carbon sinks became a tool for releasing the economic burden of achieving the emission target. For Finland, credits from carbon sinks might be important since the amount of carbon sequestered in total forest area has been large relative to total emissions. It was agreed in...

The relationship between firm size and age relative to technical change and efficiency is examined in a highly innovative and dynamic sector, the Finnish ICT equipment manufacturing industry. A stochastic frontier model is applied to an unbalanced firm level panel over the period 1990?2003. The...