New Industry Creation in Knowledge-driven Businesses – Case Mobile Games Industry in Finland

This paper discusses new industry creation in knowledge-driven industries and presents the Finnish mobile games industry as an empirical example to which earlier theories of industry evolution are reflected. First, traditional approaches to new industry development are introduced: population ecology and evolutionary economic models are reviewed shortly. Second, new knowledge-based approaches are presented to complement the evolutionary theories and special features of knowledge-driven industries are discussed. The empirical part of the paper illustrates the emergence of new industry in Finnish context and identifies some explanations for the favourable development of mobile games industry. The collaboration of major local incumbents, local new ventures and government bodies were seen as a central enabling factors. Also, the recognized need to support certain industries in local economies may result in faster legitimation of a new industry both in national and global context.