This chapter analyses the rise and fall of Nokia Phones in Oulu. Oulu grew to be the
stronghold for Nokia’s research and the development of mobile phones. In its best days,
Nokia corresponded to 20% of the total local employment. In the early 2010s, Oulu was
hit by the collapse of Nokia Phones. The company fired more than 2,000 high-tech
engineers. However, Oulu rapidly rose from the ashes of Nokia Phones, and by now, the
high-tech sector is bigger than during the heyday of Nokia. The chapter offers and analysis
of the policy measures taken and the outcomes of the incumbent and emerging
ecosystems. For destruction to be creative, certain conditions must be fulfilled. A necessary
condition is a skilled labour force to establish new innovative enterprises on the ruins of
the previous ones and create new ecosystems. In both cases, this condition was fulfilled
in Oulu. In addition, other intervening factors must contribute to successful development.
The resilience in Oulu resulted from an innovative collaboration between the local
government, employment services, other public authorities, universities, university
hospital, and private sector entrepreneurs. The core of the revival is the shift from
manufacturing high-tech products to providing digital applications and services, as the
expansion of the digital health and social service technology, expanding IoT or banking
clusters shows. The target group of the chapter is the decision-makers and stake-holders
interested in abrupt structural changes and strategies to mitigate the situation challenging
livelihood of thousands of households.