IT Industry Success in Small Countries: The Cases of Finland and New Zealand

Abstract

Given the importance of the information technology industry in today’s global economy, much recent research has focused on the relative success of small countries in fostering IT industries. This article examines the factors of IT industry success in small developed countries, and compares two such countries, Finland and New Zealand. Finland and New Zealand are alike in many respects, yet Finland’s IT industry is more successful than New Zealand’s. Three major factors that impact on the development of a successful IT industry are identified: the extent of government IT promotion, the level of research and development, and the existence of an education system that produces IT literate graduates.