Sectoral patterns of innovation and competence requirements

The increasing focus on the knowledge-based economy in policy discussions, and the emphasis on a set of narrowly defined industries classified as high-tech, unnecessarily takes attention away from the trational strengths and competence bases of Finnish industries. It is certainly true that some high-tech firms and industries, for example those related to ICT or biotech, are more dynamic and growing faster. Nonetheless, there are numerous examples of firms that succeed persistently despite their seemingly unfavourable position in the more traditional and mature low-tech sectors. The purpose of this report is to move beyond a simplified view of industrial renewal where high-tech (high R&D-intensity) is assumed to be the sole driver of change. More specifically, this report discusses the emergence of competencies and the nature of innovation in the context of traditional low-tech industries that still constitute the backbone of most industrialised economies. The report also highlights how firms in these connec