New, technology-based firms in small open economies—An analysis based on the Finnish experience

Abstract

This paper analyses the roles and impacts of new, technology-based firms (NTBFs) in a small open economy, with empirical data from Finland. It is suggested that in small open economies, NTBFs may fall into a resource trap, which might result in their being relatively less growth oriented than NTBFs in countries where the domestic market is larger. Consequently, in small open economies, the systemic impact of NTBFs could be emphasised rather than their organic growth in terms of the employment that they create.