423 Ainamo, Antti, "Evolution of the Finnish System of Innovation: The Contribution of Nokia". In: Brian Fynes and Sean Ennis (Eds.) Competing from the Periphery: Core Issues in International Business .. Dublin: The Dryden Press, 1997: 423-439 THE EVOLUTION OF THE FINNISH SYSTEM OF INNOVATION: THE CONTRIBUTION OF NOKIA ANTTI AINAMO INTRODUCTION For an economy, being peripheral means not being fully integrated into the global economy. The intellectual and economic rewards of participation in global industrial networks are greatest at the 'core' of the networks. The mission of peripheral economies in modern times has been to 'catch up' (Hampden-Turner and Trompenaars, 1994) or 'undertake' (Freeman, 1995) with the more developed or advanced economies at the core. The strategy of the public policy makers in most peripheral economies has been to implement a broad range of policies designed to accelerate, or to make possible, industrialisation and economic growth. This chapter describes, from a historical perspective, Finland's strategy of catching up with the core. In viewing Finland's industrial strategy of competing from the periphery as a series of stages of economic development, the chapter describes its economy-wide strategic changes, illustrating these changes with a description of the impact of Nokia Corporation's firm- level strategy on the Finnish economy as a whole. Implications for public policy of other economies are also suggested. Stages of economic development A peripheral economy is usually isolated from the core by geographical distance; by a lack of transportation infrastructure; by a unique or rare language or cultural heritage that is unknown