Essays on Finnish Economic Growth and Productivity, 1860-2005

This study examines Finnish economic growth. The key driver of economic growth was productivity. And the major engine of productivity growth was technology, especially the general purpose technologies (GPTs) electricity and ICT. A new GPT builds on previous knowledge, yet often in an uncertain, punctuated, fashion. Economic history, as well as the Finnish data analyzed in this study, teaches that growth is not a smooth process but is subject to episodes of sharp acceleration and deceleration which are associated with the arrival, diffusion and exhaustion of new general purpose technologies. These are technologies that affect the whole economy by transforming both household life and the ways in which firms conduct business. The findings of previous research, that Finnish economic growth exhibited late industrialisation and significant structural changes were corroborated by this study. Yet, it was not solely a story of manufacturing and structural change was more the effect of than the cause for economic growth. We offered an empirical resolution to the Artto-Pohjola paradox as we showed that a high rate of return on capital was combined with low capital productivity growth. This result is important in understanding Finnish economic growth 1975-90. The main contribution of this thesis was the growth accounting results on the impact of ICT on growth and productivity, as well as the comparison of electricity and ICT. It was shown that ICT s contribution to GDP growth was almost twice as large as electricity s contribution over comparable periods of time. Finland has thus been far more successful as an ICT producer than a producer of electricity. Unfortunately in the use of ICT the results were still more modest than for electricity. During the end of the period considered in this thesis, Finland switched from resource-based to ICT-based growth. However, given the large dependency on the ICT-producing sector, the ongoing outsourcing of ICT production to low wage countries provides a threat to productivity performance in the future. For a developed country only change is constant and history teaches us that it is likely that Finland is obliged to reorganize its economy once again in the digital era.

The Macroeconomic Effects of Fiscal Policy in a Small Open Economy under a Flexible Exchange Rate Regime

This licentiate's thesis analyzes the macroeconomic effects of fiscal policy in a small open economy under a flexible exchange rate regime, assuming that the government spends exclusively on domestically produced goods. The motivation for this research comes from the observation that the literature on the new open economy macroeconomics (NOEM) has focused almost exclusively on two-country global models and the analyses of the effects of fiscal policy on small economies are almost completely ignored. This thesis aims at filling in the gap in the NOEM literature and illustrates how the macroeconomic effects of fiscal policy in a small open economy depend on the specification of preferences. The research method is to present two theoretical model that are extensions to the model contained in the Appendix to Obstfeld and Rogoff (1995). The first model analyzes the macroeconomic effects of fiscal policy, making use of a model that exploits the idea of modelling private and government consumption as substitutes in private utility. The model offers intuitive predictions on how the effects of fiscal policy depend on the marginal rate of substitution between private and government consumption. The findings illustrate that the higher the substitutability between private and government consumption, (i) the bigger is the crowding out effect on private consumption (ii) and the smaller is the positive effect on output. The welfare analysis shows that the less fiscal policy decreases welfare the higher is the marginal rate of substitution between private and government consumption. The second model of this thesis studies how the macroeconomic effects of fiscal policy depend on the elasticity of substitution between traded and nontraded goods. This model reveals that this elasticity a key variable to explain the exchange rate, current account and output response to a permanent rise in government spending. Finally, the model demonstrates that temporary changes in government spending are an effective stabilization tool when used wisely and timely in response to undesired fluctuations in output. Undesired fluctuations in output can be perfectly offset by an opposite change in government spending without causing any side-effects.

A digital beehive could warn beekeepers when their hives are under attack

Honey bees are in decline, and the current method of keeping them can be disruptive to a colony. But new designs allow beekeepers to monitor a hive remotely, even sniff out disease and pests.

Designing an emotional strategy : Strengthening digital channel engagements

The emergence of new technologies has revolutionized the way companies interact and build relationships with customers. The channel–customer relationship has traditionally been managed via a push approach in communication (“What can we sell customers?”) with the hope of cultivating customer loyalty. However, emotional understandings of customers and how they feel about a product, service, or business can drastically alter consumers’ engagement, behavior, and purchasing preferences. This rapidly evolving landscape has left managers at a loss, and what they are experiencing is likely the beginning of a tectonic shift in the way digital channels are designed, monitored, and managed. In this article, digital channel relationships are examined, and useful concepts for clarifying and refining the emotional meaning behind company strategy and their relationship to corresponding digital channels are detailed. Using three case study examples, we discuss the process and impact of such emotionally aware digital channel designs. Recommendations are made regarding how companies can select, design, and maintain digital engagements based on their strategy and industry needs.

Pivotal principles for digital earth development in the 21st century

Reductionist thinking will no longer suffice to address contemporary, complex challenges that defy sectoral, national, or disciplinary boundaries. Furthermore, lessons learned from the past cannot be confidently used to predict outcomes or help guide future actions. The authors propose that the confluence of a number of technology and social disruptors presents a pivotal moment in history to enable real-time, accelerated and integrated action that can adequately support a ‘future earth’ through transformational solutions. Building on more than a decade of dialogues hosted by the International Society for Digital Earth (ISDE), and evolving a briefing note presented to delegates of Pivotal2015, the paper presents an emergent context for collectively addressing spatial information, sustainable development and good governance through three guiding principles for enabling prosperous living in the 21st Century. These are: (1) open data, (2) real world context and (3) informed visualization for decision support. The paper synthesizes an interdisciplinary dialogue to create a credible and positive future vision of collaborative and transparent action for the betterment of humanity and planet. It is intended that the three Pivotal Principles can be used as an elegant framework for action towards the Digital Earth vision, across local, regional, and international communities and organizations.

Correcting trade distortions in a small open economy

This paper considers the second-best strategy of correcting a wide variety of trade distortions in a small open economy with perfect competition in all markets. Using the tools of duality, we obtain some general properties of the structure and the levels of the optimal taxlsubsidy rates. The paper also analyzes the welfare effects of unilateral piecemeal trade policy reforms when some of the quota distortions—imposed by the foreign countries—are unalterable. It is shown that the merits of unilateral trade policy reforms that are emphasized in the literature crucially depend on the absence of unalterable foreign imposed quotas.

The digital-bricoleur: Contemporary screen-based visual art practices

This paper describes a practice-led methodology that combines contemporary art theory and processes, as well as concepts of fan studies to construct a space for the critical and creative exploration of screen culture. The research promotes new possibilities for purposeful creative engagements with the screen, framed through the lens of what I term the digital-bricoleur. This performative, link-making approach documents the complicit tendencies that arise out of my affective relationship with screen culture, mapping out a cultural terrain in which I can creatively and critically ‘play’. The creative exploitation of this improvisational and aleatory activity then forms the creative research outputs. It appropriates and reconfigures content from screen culture, creating digital video installations aimed at engendering new experiences and critical interpretations of screen culture.

Suppression of the zero-order term in off-axis digital holography through nonlinear filtering

We present experimental validation of a new reconstruction method for off-axis digital holographic microscopy (DHM). This method effectively suppresses the object autocorrelation,namely, the zero-order term,from holographic data,thereby improving the reconstruction bandwidth of complex wavefronts. The algorithm is based on nonlinear filtering and can be applied to standard DHM setups with realistic recording conditions.We study the robustness of the technique under different experimental configurations,and quantitatively demonstrate its enhancement capabilities on phase signals.

Thermo-mechanical characterization of surface-micromachined microheaters using in-line digital holography

This paper describes the application of lensless in-line digital holographic microscopy (DHM) to carry out thermo-mechanical characterization of microheaters fabricated through PolyMUMPs three-layer polysilicon surface micromachining process and subjected to a high thermal load. The mechanical deformation of the microheaters on the electrothermal excitation due to thermal stress is analyzed. The numerically reconstructed holographic images of the microheaters clearly indicate the regions under high stress. A double-exposure method has been used to obtain the quantitative measurements of the deformations, from the phase analysis of the hologram fringes. The measured deformations correlate well with the theoretical values predicted by a thermo-mechanical analytical model. The results show that lensless in-line DHM with Fourier analysis is an effective method for evaluating the thermo-mechanical characteristics of MEMS components.

Social Living Labs for Digital Participation: Designing with Regional and Rural Communities [workshop proceedings]

“Fostering digital participation through Living Labs in regional and rural Australian communities,” is a three year research project funded by the Australian Research Council. The project aims to identify the specific digital needs and practices of regional and rural residents in the context of the implementation of high speed internet. It seeks to identify new ways for enabling residents to develop their digital confidence and skills both at home and in the community. This two-day symposium will bring together researchers and practitioners from diverse backgrounds to discuss design practices in social living labs that aim to foster digital inclusion and participation. Day one will consist of practitioner and research reports, while day two will provide an opportunity for participants to imagine and design future digital participation strategies. Academic participants will also have an opportunity to contribute to a refereed edited volume by Chandos Publishing (an imprint of Elsevier).

Bi-cultural content publication on a digital noticeboard: A design and cultural differences case study

We present our observations of Aboriginal Australian practices around a custom digital noticeboard and compare our insights to related research on cultural differences, literacy and ICT4D. The digital noticeboard was created, upon a request by the community Elders, to foster communication across the community. The initial design, informed by discussions and consultations, aimed at supporting the local Aboriginal language and English, both in written and spoken form, at supporting the oral tradition, and at accommodating for different perceptions and representations of time. This paper presents observations about the first encounters with the digital noticeboard by those members of the community that took part in its conceptualization. Such observations reinforce existing knowledge on such cultural phenomena as collectivism and time perception, issues related to literacy, moderation and censorship. We contribute to framing such knowledge within a concrete case study and draw implication for design of tools for bi-cultural content publication.

Translating emotional insights into digital channel designs: Opportunities to enhance the airport experience

Purpose The purpose of this study is to identify and understand the emotions behind a passenger’s airport experience and how this can inform digital channel engagements. Design/methodology/approach This study investigates the emotional experience of two hundred (200) passengers’ journeys at an Australian domestic airport. A survey was conducted which implemented the use of Emocards and an interview approach of laddering. The responses were then analysed into attributes, consequences and values. Findings The results indicate that across key stages of the airport (parking, retail, gates and arrivals) passengers had different emotional experiences (positive, negative and neutral). The attributes, consequences and values behind these emotions were then used to propose digital channel content and purpose of various future digital channel engagements. Research limitations/implications By gaining emotional insights airports are able to generate digital channel engagements, which align with passengers’ needs and values rather than internal operational motivations. Theoretical contributions include the development of the Technology Acceptance Model to include emotional drivers as influences in the use of digital channels. Originality/value This research provides a unique method to understand the passengers’ emotional journey across the airport infrastructure and suggest how to better design digital channel engagements to address passenger latent needs.

Digital Photography in the Diagnosis and Follow-up of Ocular Diseases

Purpose: The aim of the present study was to develop and test new digital imaging equipment and methods for diagnosis and follow-up of ocular diseases. Methods: The whole material comprised 398 subjects (469 examined eyes), including 241 patients with melanocytic choroidal tumours, 56 patients with melanocytic iris tumours, 42 patients with diabetes, a 52-year old patient with chronic phase of VKH disease, a 30-year old patient with an old blunt eye injury, and 57 normal healthy subjects. Digital 50° (Topcon TRC 50 IA) and 45° (Canon CR6-45NM) fundus cameras, a new handheld digital colour videocamera for eye examinations (MediTell), a new subtraction method using the Topcon Image Net Program (Topcon corporation, Tokyo, Japan), a new method for digital IRT imaging of the iris we developed, and Zeiss photoslitlamp with a digital camera body were used for digital imaging. Results: Digital 50° red-free imaging had a sensitivity of 97.7% and two-field 45° and 50° colour imaging a sensitivity of 88.9-94%. The specificity of the digital 45°-50° imaging modalities was 98.9-100% versus the reference standard and ungradeable images that were 1.2-1.6%. By using the handheld digital colour video camera only, the optic disc and central fundus located inside 20° from the fovea could be recorded with a sensitivity of 6.9% for detection of at least mild NPDR when compared with the reference standard. Comparative use of digital colour, red-free, and red light imaging showed 85.7% sensitivity, 99% specificity, and 98.2 % exact agreement versus the reference standard in differentiation of small choroidal melanoma from pseudomelanoma. The new subtraction method showed growth in four of 94 melanocytic tumours (4.3%) during a mean ±SD follow-up of 23 ± 11 months. The new digital IRT imaging of the iris showed the sphincter muscle and radial contraction folds of Schwalbe in the pupillary zone and radial structural folds of Schwalbe and circular contraction furrows in the ciliary zone of the iris. The 52-year-old patient with a chronic phase of VKH disease showed extensive atrophy and occasional pigment clumps in the iris stroma, detachment of the ciliary body with severe ocular hypotony, and shallow retinal detachment of the posterior pole in both eyes. Infrared transillumination imaging and fluorescein angiographic findings of the iris showed that IR translucence (p=0.53), complete masking of fluorescence (p=0.69), presence of disorganized vessels (p=0.32), and fluorescein leakage (p=1.0) at the site of the lesion did not differentiate an iris nevus from a melanoma. Conclusions: Digital 50° red-free and two-field 50° or 45° colour imaging were suitable for DR screening, whereas the handheld digital video camera did not fulfill the needs of DR screening. Comparative use of digital colour, red-free and red light imaging was a suitable method in the differentiation of small choroidal melanoma from different pseudomelanomas. The subtraction method may reveal early growth of the melanocytic choroidal tumours. Digital IRT imaging may be used to study changes of the stroma and posterior surface of the iris in various diseases of the uvea. It contributed to the revealment of iris atrophy and serous detachment of the ciliary body with ocular hypotony together with the shallow retinal detachment of the posterior pole as new findings of the chronic phase of VKH disease. Infrared translucence and angiographic findings are useful in differential diagnosis of melanocytic iris tumours, but they cannot be used to determine if the lesion is benign or malignant.