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66 Pekka Himanen and Manuel Castellspositioned for a new round of innovation and growth in new market lines andin new areas of the world. Analytically, the key question is why innovationcontinued, and why productivity growth kept rising at a high rate. The answersto this question may provide the key for the specificity of the Silicon Valleymodel, and thus we reserve them for our conclusion.THE FINNISH MODELLet us now compare the Finnish model to the Silicon Valley model. At thebeginning of this chapter we showed that Finland is one of the leading informationeconomies in the world. Behind this feature there is a specific Finnishmodel of technological innovation, economic productivity, and social organization.At the heart of Finnish information technology production is an informationtechnology cluster that consists of approximately 3,000 companies (Ali-Yrkkö et al., 1999). In addition to Nokia, the Finnish information technologycompanies include tele-operators like TeliaSonera and Elisa, electronicsmanufacturing service companies like Elcoteq and Flextronics, electronicsmanufacturers like Tellabs, NK Cables, and Aspocomp, and system integratorslike TietoEnator. Table 2.3 presents the top five information technologycompanies in Finland. There are also many innovative start-up companies,such as the security software houses F-Secure and SSH Communications,which do not yet make it onto the top five list.Currently, Nokia is by far the biggest information technology company inFinland. It forms the core of the Finnish IT industry. In fact, Nokia’s partnernetwork includes three hundred Finnish IT companies. However, this figurealso means that the Finnish IT cluster is by no means limited to, or only dependenton, Nokia. And being a partner of Nokia does not necessarily mean beingTable 2.3Top five Finnish information technology companies (revenues for2003)Company Industry Revenues (EUR billion)1 Nokia Mobile phones and networks 29.52 TeliaSonera Tele-operator 9.03 Elcoteq EMS 2.24 Elisa Tele-operator 1.55 TietoEnator System integration 1.4Source:Based on annual reports