Explanations

Comparative Advantage: How did Helsinki become the mobile gaming capital of the world?

Geoff Riley

28th February 2023

This is an awesome short video from the BBC that covers key concepts such as human capital, external economies of scale, dynamic efficiency and much more besides. Finland has become home to some of the most ambitious and successful games makers in the world and in an industry worth an estimated £120 billion to the global economy.

Helsinki has become a hub for mobile gaming production due to a combination of factors, including its strong technology industry, supportive government policies, and a thriving startup ecosystem.

Firstly, Finland has a long history of technological innovation and development, particularly in the field of mobile technology. This has provided a strong foundation for the growth of the mobile gaming industry, which has been further supported by the availability of skilled software developers and engineers.

Secondly, the Finnish government has implemented policies to support innovation and entrepreneurship, providing funding and resources for startups to grow and succeed. This has led to the development of a robust startup ecosystem, with many successful companies launching from Finland.

Finally, Helsinki has become a magnet for mobile game developers due to the presence of established companies such as Rovio Entertainment (the creators of Angry Birds) and Supercell (the developers of Clash of Clans and Clash Royale). These companies have provided a strong framework for other mobile game developers to thrive, with many small and medium-sized companies benefitting from the expertise and resources of these larger players.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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