European luxury brands made in China: the effect of low-cost country manufacturing on brand image and purchase decisions

European luxury brands have an image of manufacturing their products in the same country where the brands originate. However, in the past years many luxury brands have shifted their manufacturing to countries outside Europe. China is now a common manufacturing country for European luxury brands despite the country’s poor image as a manufacturer. Chinese manufacturing is often associated with bad quality, bad labour conditions, mass production, and counterfeits. The image of China does not quite match the image luxury brands enjoy including characteristics such as high end quality, craftsmanship, details, design, or premium price. A negatively perceived country-of-manufacture may have an effect on a brand’s image and consumers’ purchase decisions. This thesis is focused on European luxury brands manufacturing in China, and how this effects the brand image and purchase decisions among luxury consumers. The empirical part of this thesis is based on focus group research, which is a popular method in the field of qualitative research. The main focus group is female luxury consumers in Finland. This main group has been divided into three categories: 1) the university students, 2) the young career women, 3) the experienced luxury consumers. This categorization has been done based on their different stages in luxury consumption. All in all, the empirical research consisted of 11 interviews and 29 participants. The main contribution of this thesis was that there is a difference between the opinions of the younger groups (university students and young career women) and the experienced luxury consumers when discussing the effect of country-of-manufacture on brand image and purchase decisions of luxury brands. The younger participants thought that manufacturing luxury products in China might affect the brand image, but their purchase decisions would not be that much affected by the country-of-origin. The experienced luxury consumers had quite a different view on the country-of-origin of luxury brands – they found it an important decisive factor prior making purchases. The majority of experienced luxury consumers would not buy luxury products made in China, and they would always check where these products are made in.

The Influence of Informational and Emotional Advertising Appeals on Advertising Effectiveness – Consumers’ Perspective on the Over-the-Counter Product Advertisements in Finland

Consumers face enormous amounts of promotional messages daily whereas the pharmaceutical companies among other industries spend considerable time and money developing effective advertising strategies. There are multiple possible ways to appeal the target customer in order to increase the effectiveness of the advertisement. In spite of the various possibilities to categorize persuasive communication, the informational and the emotional appeals are the typical approaches. This study assesses the influence of the informational and emotional advertising appeals on the advertising effectiveness in the context of OTCs in Finland. The research method applied in this study is a quantitative survey. The data consists of 461 responses from the target population of 18–80 years old Finnish speaking consumers. The results from the marketing research indicate that the positive correlations of the emotional appeals are much stronger than the positive correlations of the informational appeals relating to the advertising effectiveness. However, on average the Finnish consumers experience the OTC advertisements relying on the informational appeals more effective than the OTC advertisements relying on the emotional appeals. Furthermore, within emotional appeals there is a much greater variety in the experienced advertising effectiveness not providing as stabile and consistent experienced advertising effectiveness compared to the informational appeals. Thus, the OTC advertisement relying more on the emotional appeals are much more risky in terms of advertising effectiveness. There are also differences with the experienced advertising effectiveness between the Finnish consumer groups and the information can be utilised when designing tailored OTC advertisements. The Finnish men consider humorous advertisements more effective than the Finnish women. In addition, the people living outside Uusimaa Region experience higher advertising effectiveness with the advertisements relying more on the informational advertisements compared to the people living in Uusimaa Region. In similar vein, the people with lower education experience higher advertising effectiveness with the advertisements relying more on the informational advertisements compared to the people with high education. Additionally, the older generation perceive an OTC advertisement with a middle-aged celebrity more effective than the younger consumers

Evaluation of Teacher Education Programs by Students and Graduates

The purpose of this research was to do a repeated cross-sectional research on class teachers who study in the 4th year and also graduated at the Faculty of Education, University of Turku between the years of 2000 through 2004. Specifically, seven research questions were addressed to target the main purpose of the study: How do class teacher education masters’ degree senior students and graduates rate “importance; effectiveness; and quality” of training they have received at the Faculty of Education? Are there significant differences between overall ratings of importance; effectiveness and quality of training by year of graduation, sex, and age (for graduates) and sex and age (for senior students)? Is there significant relationship between respondents’ overall ratings of importance; effectiveness and their overall ratings of the quality of training and preparation they have received? Are there significant differences between graduates and senior students about importance, effectiveness, and quality of teacher education programs? And what do teachers’ [Graduates] believe about how increasing work experience has changed their opinions of their preservice training? Moreover the following concepts related to the instructional activities were studied: critical thinking skills, communication skills, attention to ethics, curriculum and instruction (planning), role of teacher and teaching knowledge, assessment skills, attention to continuous professional development, subject matters knowledge, knowledge of learning environment, and using educational technology. Researcher also tried to find influence of some moderator variables e.g. year of graduation, sex, and age on the dependent and independent variables. This study consisted of two questionnaires (a structured likert-scale and an open ended questionnaire). The population in study 1 was all senior students and 2000-2004 class teacher education masters’ degree from the departments of Teacher Education Faculty of Education at University of Turku. Of the 1020 students and graduates the researcher was able to find current addresses of 675 of the subjects and of the 675 graduates contacted, 439 or 66.2 percent responded to the survey. The population in study 2 was all class teachers who graduated from Turku University and now work in the few basic schools (59 Schools) in South- West Finland. 257 teachers answered to the open ended web-based questions. SPSS was used to produce standard deviations; Analysis of Variance; Pearson Product Moment Correlation (r); T-test; ANOVA, Bonferroni post-hoc test; and Polynomial Contrast tests meant to analyze linear trend. An alpha level of .05 was used to determine statistical significance. The results of the study showed that: A majority of the respondents (graduates and students) rated the overall importance, effectiveness and quality of the teacher education programs as important, effective and good. Generally speaking there were only a few significant differences between the cohorts and groups related to the background variables (gender, age). The different cohorts were rating the quality of the programs very similarly but some differences between the cohorts were found in the importance and effectiveness ratings. Graduates of 2001 and 2002 rated the importance of the program significantly higher than 2000 graduates. The effectiveness of the programs was rated significantly higher by 2001 and 2003 graduates than other groups. In spite of these individual differences between cohorts there were no linear trends among the year cohorts in any measure. In respondents’ ratings of the effectiveness of teacher education programs there was significant difference between males and females; females rated it higher than males. There were no significant differences between males’ and females’ ratings of the importance and quality of programs. In the ratings there was only one difference between age groups. Older graduates (35 years or older) rated the importance of the teacher training significantly higher that 25-35 years old graduates. In graduates’ ratings there were positive but relatively low correlations between all variables related to importance, effectiveness and quality of Teacher Education Programs. Generally speaking students’ ratings about importance, effectiveness and quality of teacher education program were very positive. There was only one significant difference related to the background variables. Females rated higher the effectiveness of the program. The comparison of students’ and graduates’ perception about importance, effectiveness, and quality of teacher education programs showed that there were no significant differences between graduates and students in the overall ratings. However there were differences in some individual variables. Students rated higher in importance of “Continuous Professional Development”, effectiveness of “Critical Thinking Skills” and “Using Educational Technology” and quality of “Advice received from the advisor”. Graduates rated higher in importance of “Knowledge of Learning Environment” and effectiveness of “Continuous Professional Development”. According to the qualitative data of study 2 some graduates expressed that their perceptions have not changed about the importance, effectiveness, and quality of training that they received during their study time. They pointed out that teacher education programs have provided them the basic theoretical/formal knowledge and some training of practical routines. However, a majority of the teachers seems to have somewhat critical opinions about the teacher education. These teachers were not satisfied with teacher education programs because they argued that the programs failed to meet their practical demands in different everyday situations of the classroom e.g. in coping with students’ learning difficulties, multiprofessional communication with parents and other professional groups (psychologists and social workers), and classroom management problems. Participants also emphasized more practice oriented knowledge of subject matter, evaluation methods and teachers’ rights and responsibilities. Therefore, they (54.1% of participants) suggested that teacher education departments should provide more practice-based courses and programs as well as closer collaboration between regular schools and teacher education departments in order to fill gap between theory and practice.

Kokemäenjoen suiston kehitys, maaperämuodostumat ja niiden kemialliset piirteet

Suurelta osin Natura-alueeseen kuuluvan Kokemäenjoen suistoalueen kuivan maan ja suiston edustan vesialueen erityyppisten maaperäkerrostumien kerrosjärjestys ja alueellinen jakautuminen selvitettiin pintamaaperän kartoituksella, tutkimuskaivannoilla ja kairauksella. Suiston kerrostumat luokiteltiin viiteen maaperämuodostumaan. Vanhimmasta nuorimpaan, Toukari, Vainio-Mattila, Hevosluoto, Lanajuopa ja Säikkä muodostumaan. Nämä edustavat vanhoja Itämeren altaan ja nuorempia merelle päin etenevän suiston eri osien kerrostumisympäristöjä. Eri muodostumien fysikaaliset ja kemialliset ominaisuudet kuvattiin ja ne eroavat luonteeltaan ratkaisevasti toisistaan. Suiston etenemistä edustavat Hevosluoto- ja Säikkä-muodostumat ovat kontaminoituneet 1900-luvun alkupuolelta lähtien yhä voimakkaammin ihmistoiminnasta kertyvistä raskasmetallipitoisuuksista ja orgaanisista haitta-aineista. Tämä näkyy erityisesti elohopean, kadmiumin, arseenin, lyijyn, sinkin, nikkelin, dioksiinien ja furaanien kokonaispitoisuuksien kasvuna näissä muodostumissa. Pitoisuudet ovat suurimpia muodostumien nuorimmissa osissa. Kuivalla maalla raskasmetallipitoisuudet ylittävät paikoin valtioneuvoston pilaantuneelle maaperälle asettamat kynnysarvot, jolloin säädökset on huomioitava suiston maaperää muokattaessa. Vesialueella nämä kynnysarvot ylittyvät myös orgaanisten haitta-aineiden osalta. Tietyin osin ovat esimerkiksi arseenin ja nikkelin osalta taustapitoisuudet suistoalueen vanhimmassa Toukari muodostumassa jo luontaisesti kynnysarvoja suuremmat. Tämä pitää osata ottaa huomioon maansiirtotoimenpiteitä suunniteltaessa. Suistoon kerrostuvan maa-aineksen ja nopean maankohoamisen vuoksi suisto etenee nykyisin 30-40 m vuodessa merialueelle päin. Tämä mataloittaa vääjäämättömästi suiston edustan vesialueita kerrostumisen siirtyessä merelle päin. Näin myös Natura-alueen ainutlaatuiset biotoopit vähitellen siirtyvät merelle päin.

Work for your happiness - Theoretical and empirical study defining and measuring happiness at work

There are vast changes in the work environment, and the traditional rules and management methods might not be suitable for today’s employees anymore. The meaning of work is also changing due to the younger and higher educated generations entering the markets. Old customs need to be re-validated and new approaches should be taken into use. This paper strongly emphasizes the importance of happiness research and happiness at work. The values towards the meaning of work are changing; people demand happiness and quality from all aspects of their lives. The aim of this study is to define happiness - especially at work - and to explain how it can be measured and what kind of results achieved. I also want to find out how the contents of work and the working environment might enhance happiness. The correlation between education and happiness is discussed and examined. I am aware that the findings and theories are concentrating mainly on Western Countries and highlighting the values and work-environments of those societies. The main aim of the empirical study is to find out if there are connections between happiness and work in data collected by World Value Survey in 2005, and if the profession has effects on happiness. Other factors such as the correlation of age, sex, education and income are examined too. I also want to find out what kind of values people have towards work and how these affect the happiness levels. The focus is on two nations: Finland (N=1014) and Italy (N=1012). I have also taken the global comparison within, that is all 54 countries (N=66,566) included in the 5th wave (during the years 2005 -2008) of the World Value Survey. The results suggest that people are generally happy around the world; happiness decreasing with the age, the educated being happier than the uneducated and the employed happier than the unemployed. People working in neat “white collar” jobs are more likely happier than those working in factories or outdoors. Money makes us happier, until certain level is reached. Work is important to people and the importance of work adds happiness. Work is also highly appreciated, but there are more happy people among those who do not appreciate work that highly. Safety matters the most when looking for a job, and there are more happy people among those who have selected the importance of work as the first choice when looking for a job, than among those to whom an income is the most important aspect. People are more likely happy when the quality of work is high, that is when their job consists of creative and cognitive tasks and when they have a feeling of independence.

„Und frei erklär' ich alle meine Knechte“ : Höflichkeit als Ausdruck sozialer Utopie in Schillers Drama Wilhelm Tell.

My dissertation is an interdisciplinary study of the relationship between the Swiss peasants and nobles in Friedrich Schiller’s play Wilhelm Tell (1804). Changes to this relationship are of particular interest. Communication in the play is examined via a micro-analysis based on Penelope Brown’s and Stephen C. Levinson’s theoretical framework Politeness: Some universals in language usage. (1978, 1987). Brown and Levinson distinguish between positivepoliteness and negative-politeness strategies and their distinction is useful for my argument, since they claim that the use of positive-politeness strategies reflects the speaker’s intention to minimize the distance between the interlocutors (Brown and Levinson 1987: 103). Negative-politeness strategies, by contrast, result in social distancing (Brown and Levinson 1987: 130). In accordance with Brown’s and Levinson’s theory, it can be argued that the distribution of positive-politeness and negative-politeness strategies reflects changes in the distance between the fictional interlocutors as representatives of their social classes in Wilhelm Tell. The analysis of the communication in the play highlights that existing conflicts within the social groups are resolved and replaced with solidarity (cf. ‘Claim ’common ground’ and ‘Claim in-group membership with H’) before the peasants and noblemen appear on stage simultaneously in III, 3. In the scene in question, Geßler forces Tell to shoot the apple off his son’s head. Although both nobles and peasants are present, they do not communicate with each other. Thus, communication between the social classes occurs for the first time in IV, 2. This scene is crucial with regard to the changes in the relationship between the social classes in the play. The younger generation, with Rudenz as a representative of the nobility and Melchthal as a representative of the peasants, break with the prevailing conventions and initiate a new type of cooperation based on mutual helping and equality in the right and the duty to protect the country from the violent oppressors representing Habsburg (cf. ‘Convey that S and H are cooperators’, ‘Claim reflexivity’ and ‘Claim reciprocity’). The linguistic analysis reveals the crucial role of the Swiss nobility in the development of the social utopia, as well as the non-contribution of Wilhelm Tell. In fact, Tell never communicates with the Swiss noblemen. The role of the nobility and the role of Wilhelm Tell are further investigated in a comparison between Schiller’s Wilhelm Tell and four of Schiller’s historical sources. These sources, which contain earlier, non-dramatic versions of the establishment of the Swiss Confederation, are the following: Kronica von der loblichen Eydtgnoschaft compiled by Petermann Etterlin (1507), Gemeiner loblicher Eydgnoschafft Stetten Landen vnd Völckeren Chronik wirdiger thaaten beschreybung (1548) written by Johann Stumpf, Chronicon Helveticum of Aegidius Tschudi (the publication of Iselin from 1734 and 1736) and Johannes von Müller’s Geschichten schweizerischer Eidgenossenschaft (1786). Thecomparison sheds light on the fact that both Tschudi and von Müller emphasize unity among the Swiss and cooperation in their attempt to defeat the enemy. However, Schiller has reinforced the role of the nobility in the cooperation. In addition, the comparison between Schiller’s play and the historical sources reveals profound differences with regard to the role of Wilhelm Tell. In all of Schiller’s sources, Tell is present at Rütli, whereas he is absent from Rütli in Schiller’s play. In the play in general, Tell is conspicuously separated from the other peasants. Explanations of my linguistic results, which correspond to the above mentioned differences between the roles of the figures in Wilhelm Tell and the depictions in Schiller’s sources, are found by comparing the path of Schiller’s Swiss towards an egalitarian perspective with the kind of social evolution depicted by the German philosopher Johann Benjamin Erhard in his essay Über das Recht des Volks zu einer Revolution (1795). Aiming at considering Schiller’s social utopia within the larger cultural framework of the German response to the French Revolution, the comparison suggests that both authors depict the need for social change in terms of a change in social hierarchies (Erhard 1970: 95-96, cf. Foi 2005: 225). Erhard’s essay thus helps explain the political intention of Schiller’s play to keep the ideals of the French Revolution as crucial aims but profoundly change the means towards freedom and equality. In his attempt to claim the political resistance of the nobles and peasants as just, however, Schiller sacrificed the figure of Wilhelm Tell. Guilty of the murder of Geßler, Tell was no longer suitable for the righteous revolution imagined by Schiller (cf. Bloch 2008: 215 and Schulz 2005: 228). This explains Tell’s absence in the Rütli scene, his isolation in the plot, as well as his non-contribution to the social utopia. Together, the linguistic analysis and contextualisation of Schiller’s play support my hypothesis that Wilhelm Tell describes a process of change in the relationship between peasants and nobles. The interdisciplinary approach to the topic proved to be fruitful for all areas of the research involved.

Microenterprise success and failure factors

The purpose of this study is to identify factors contributory to success or failure of a microenterprise. Microenterprise is an enterprise with less than10 employees. About 99 % of all Finnish enterprises fall in this category. Earlier studies do not provide a comprehensive view on microenterprise success and failure factors. The theoretical part discusses the definition of success and failure, previous research and results already established about the topic and categories of business environment. The empirical part is founded on quantitative survey results from 204 Finnish microenterprises. The questions of the survey were based on previous surveys, literature and intuition. Both success and failure factors were enquired. Summary of the results was made and the results were compared among successful and unsuccessful enterprises. In open-end questions, the most important factors mentioned to affect enterprise performance positively were "Employees", "Customers" and "Skills, knowledge, education and experience." The most important factors affecting enterprise performance negatively were "Economical situation", "Employees availability and attitudes" as well as "Political decisions and passed laws". In Likert-scale set of questions, the most significant factors from the point of view of enterprise performance were "Product and / or service good quality", "Good reputation of the company" and "Staff's strong skills". The least significant factors were "Effect of marketing and promotion", "Conflicts" and "Differences of points of views of different generations". By Likert-scale set of questions, it was also tested which operations the enterprises perform, and according to the results, successful enterprises found "Performing a market research", "Use of distribution channel in sales" and "Expanding to new markets" less important than unsuccessful enterprises. The tests proved that the age of the enterprise correlates with the level of success of the enterprise: The younger the enterprise, the more successful it is. In addition, the results show that if the enterprise is family based, the less successful it is. In addition, there was also slight correlation between success and the level of growth, indicating that higher the level of growth the more successful the enterprise is. From the business environment point of view, the key finding was that internal factors affect more on the success of an enterprise than external factors, and that external factors affect more on the failure of an enterprise than internal factors.

”Kielestä kiinni”. Kuudesluokkalaisten maahanmuuttajaoppilaiden suomen kielen tason vaihtelut

Tämän tutkimuksen tarkoituksena on selvittää, minkälaista vaihtelua esiintyy maahanmuuttajaoppilaiden suomen kielen taidoissa peruskoulun kuudennella luokalla. Tutkimuksen tavoitteena on myös selvittää, minkälainen yhteys taustamuuttujilla (sukupuoli, äidinkieli, maahantuloikä, maahantulon syy, maassaoloaika ja vanhempien koulutausta) ja opetusjärjestelyillä, kuten perusopetukseen valmistavalla opetuksella, suomi toisena kielenä -opetuksella ja oman äidinkielen opetuksella, on suomen kielen taidon tasoon. Lisäksi tutkimuksen tavoitteena on selvittää oppilaan käyttämän kielen (suomen kieli ja äidinkieli) yhteyttä suomen kielen taidon tasoon. Tutkimusmetodina toimi mixed methods -tutkimus, ja tutkimuksen lähestymistapoja olivat kvantitatiivinen survey-tutkimus ja kvalitatiivinen sisällön analyysi. Tutkimukseen osallistui 219 maahanmuuttajaoppilasta 20:stä Turun koulusta. Tutkimusaineisto kerättiin Turun erityisopettajien ja suomi toisena kielenä -opettajien laatiman kielitestipaketin avulla. Oppilaan suullista ja kirjallista tuottamista arvioivat lasta opettavat opettajat eurooppalaisen viitekehyksen kielitaitotasojen kriteereitä käyttäen. Oppilaat arvioivat omaa äidinkielen ja suomen kielen taitoaan. Lisäksi oppilaat ja vanhemmat täyttivät tutkijan laatimat taustatietolomakkeet. Kielitestien tulosten mukaan oppilaista yli puolella oli tyydyttävä suomen kielen taito. Kaikista neljästä kielellisestä osiosta maahanmuuttajataustaiset oppilaat menestyivät parhaiten rakennekokeessa ja sanelussa, kun taas kuullun ja luetun ymmärtämisen tulokset olivat heikompia. Opettajien arviointien perusteella oppilaiden suulliset taidot vastasivat keskimäärin itsenäisen kielenkäyttäjän osaajan tasoa (B2) ja kirjoittamistaidot kynnystasoa (B1). Oppilaiden suomi toisena kielenä -arvosanan keskiarvo oli 7,26. Suomessa asumisen kestolla, maahantulon syyllä, äidinkielellä, maahantuloiällä, ja vanhempien koulutaustaustalla oli tilastollisesti merkitsevä yhteys suomen kielen taidon tasoon. Mitä kauemmin oppilaat olivat asuneet Suomessa ja mitä nuorempina he olivat tulleet Suomeen, sitä paremmin he menestyivät kielitesteissä. Paluumuuttajat menestyivät kielitaitotehtävissä kaikkein parhaiten ja pakolaiset heikoiten. Somalinkieliset erottuivat muista kieliryhmän edustajista heikoimpina suomen kielen taidon tasoltaan. Venäjänkieliset ja vietnaminkieliset saavuttivat parhaat tulokset kaikissa mittareissa. Erityisesti äidin korkeampi koulutustaso oli yhteydessä oppilaiden korkeampaan suomen kielen taidon tasoon. Oppilaat arvioivat suomen kielen taitonsa omaa äidinkieltään paremmaksi puhumisessa, lukemisessa ja kirjoittamisessa. Parhaiten eri mittareissa menestyivät oppilaat, jotka eivät olleet osallistuneet perusopetukseen valmistavaan opetukseen eivätkä erilliseen suomi toisena kielenä -opetukseen. Omaa äidinkieltään enemmän opiskelleet menestyivät kielitaitotehtävissä paremmin kuin vähän aikaa omaa äidinkieltään opiskelleet, mutta yhtä hyvin kuin ne, jotka eivät olleet opiskelleet omaa äidinkieltään lainkaan. Oppilaat, jotka puhuivat kaveriensa kanssa sekä omaa äidinkieltään että suomen kieltä, osoittautuivat kielitaidon tasoltaan paremmiksi kielitesteissä ja opettajien arvioinneissa.

The electricity distribution network in Saint-Petersburg area and benchmark between Saint-Petersburg and City of Stockholm related distribution companies' performance

The main objective of the Thesis is the description of the electricity distribution networks in Saint-Petersburg area and Stockholm as well. Main similarity and differences in the construction and technicalperformance are presented in the study. Present and future development and investment into the electricity distribution network of OJSC Lenenergo are viewed. The Thesis presents the overview of the power industry reform in Russia. The current state of the electricity distribution sector is described. The study views the participation of the foreign investor "Fortum Power and Heat Oy" inthe development and management of the OJSC Lenenergo. Benchmark comparison of the prices and tangible assets of the main electricity distribution companies in Saint-Petersburg and Stockholm areas is done.

Clustering and International Competitiveness of Information Technology Industry in the Saint Petersburg Area

The main objective of this study is to assess the potential of the information technology industry in the Saint Petersburg area to become one of the new key industries in the Russian economy. To achieve this objective, the study analyzes especially the international competitiveness of the industry and the conditions for clustering. Russia is currently heavily dependent on its natural resources, which are the main source of its recent economic growth. In order to achieve good long-term economic performance, Russia needs diversification in its well-performing industries in addition to the ones operating in the field of natural resources. The Russian government has acknowledged this and started special initiatives to promote such other industries as information technology and nanotechnology. An interesting industry that is basically less than 20 years old and fast growing in Russia, is information technology. Information technology activities and markets are mainly concentrated in Russia’s two biggest cities, Moscow and Saint Petersburg, and areas around them. The information technology industry in the Saint Petersburg area, although smaller than Moscow, is especially dynamic and is gaining increasing foreign company presence. However, the industry is not yet internationally competitive as it lacks substantial and sustainable competitive advantages. The industry is also merely a potential global information technology cluster, as it lacks the competitive edge and a wide supplier and manufacturing base and other related parts of the whole information technology value system. Alone, the industry will not become a key industry in Russia, but it will, on the other hand, have an important supporting role for the development of other industries. The information technology market in the Saint Petersburg area is already large and if more tightly integrated to Moscow, they will together form a huge and still growing market sufficient for most companies operating in Russia currently and in the future. Therefore, the potential of information technology inside Russia is immense.

Clustering and international competitiveness of information technology industry in the Saint Petersburg area

The main objective of this study is to assess the potential of the information technology industry in the Saint Petersburg area to become one of the new key industries in the Russian economy. To achieve this objective, the study analyzes especially the international competitiveness of the industry and the conditions for clustering. Russia is currently heavily dependent on its natural resources, which are the main source of its recent economic growth. In order to achieve good long-term economic performance, Russia needs diversification in its well-performing industries in addition to the ones operating in the field of natural resources. The Russian government has acknowledged this and started special initiatives to promote such other industries as information technology and nanotechnology. An interesting industry that is basically less than 20 years old and fast growing in Russia, is information technology. Information technology activities and markets are mainly concentrated in Russia’s two biggest cities, Moscow and Saint Petersburg, and areas around them. The information technology industry in the Saint Petersburg area, although smaller than Moscow, is especially dynamic and is gaining increasing foreign company presence. However, the industry is not yet internationally competitive as it lacks substantial and sustainable competitive advantages. The industry is also merely a potential global information technology cluster, as it lacks the competitive edge and a wide supplier and manufacturing base and other related parts of the whole information technology value system. Alone, the industry will not become a key industry in Russia, but it will, on the other hand, have an important supporting role for the development of other industries. The information technology market in the Saint Petersburg area is already large and if more tightly integrated to Moscow, they will together form a huge and still growing market sufficient for most companies operating in Russia currently and in the future. Therefore, the potential of information technology inside Russia is immense.