BECOMING HIGH-TECH: THE REINVENTION OF THE MECHANICAL ENGINEERING INDUSTRY IN TAMPERE, FINLAND

Abstract

This case study describes and analyzes the transformation of the mechanical engineering industry in Tampere, Finland, over the past 30 years. The objective is to elucidate how the local innovation system in Tampere -with special emphasis on universities and research institutions- affects the ability of firms to innovate and assimilate new technology. Pursuing a grounded historical-sociological approach, we capture circumstances and transformations at the institutional level as well as the innovation process observed through the evolution of specific products in three local companies. We view technological change as a process that is inherently social. We find that the ability to integrate new technology (particularly control systems and information technology) into the machines is the core innovation process. Interdisciplinary collaboration is fundamental. Our findings suggest that Tampere facilitates the process of integration through patterns of interactions and institutional arrangements that facilitate the ability of diverse actors to cross organizational and disciplinary boundaries, entertain conversations and initiate interdisciplinary projects. Policies catalyze the process by bringing actors together. Universities and research institutions support innovation by educating engineers and technicians with integrative capabilities, performing interdisciplinary research, being the source of new ideas and providing expert interlocutors that engage in local conversations.

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