The Finnish economy has done enormously well in recent international comparisons of technological advancement and economic competitiveness; it has reached a notable runner-up position in just a couple of decades, measured by a range of indicators. The paper looks at the process of national scale competitiveness building in a historical perspective and discusses the reasons for the Finnish success. It analyses the main actors and features in the national innovation system and seeks befitting characterizations of the country-specific social capital that are believed to have provided the resource base for the competitiveness of the Finnish technology sector and the economy at large. Lastly, the paper takes up issues related to the sustainability of the system in light of contemporary understanding of what creates competitive advantage in the present-day world economy.
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