Institutional Structure Leading to the Similarity and Disparity in Innovation Inducement in EU is Countries-Finnish Conspicuous Achievement Triggered by Nokia's IT Driven Global Business

The EU is composed of the European countries with many different traditions and languages, but also with shared values and cultures. There are many similarities and disparities in institutions among the EU member countries. In recent years, the EU has made efforts harmonise the innovation policies to enhance its competitiveness. However, innovation capabilities among the EU member countries are still widely different. Therefore, identifying innovation generation mechanism and the role of institutions by using the data of EU-15 members countries could bring useful insights. Through the principal component analysis, multi-regression analysis, and cluster analysis, it is demonstrated that the northern European countries as Sweden, Finland and Denmark are superior in amount of inputs and resources for innovation activities, particularly in the high-tech service sector such as ICT area, and have high social equality and stability with high value adding industry structure. Strong high-tech service sector is one of keys for innovation capability. In addition, it is demonstrated that those northern European countries, particularly Finland, have institutions that are adaptable in an information society, which leads to IT driven economy growth, and co-evolutionary structure between innovation generation and institutions.