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76 Pekka Himanen and Manuel Castellsdifference is in the management of the network enterprise. There are manycompanies now that have quite a similar external structure to Nokia’s butthey have faced severe problems in keeping the network together.Behind Nokia’s ability to use the networking model flexibly and effectivelyis a management culture that is suited to orchestrating a networkenterprise. First, Nokia as a whole could be described as a dynamic networkoriented toward picking up, realizing, and creating signals about futureexpectations. The key is “efficient logistics,” which is much more than traditionallogistics: it means transparent and rapid sharing of information aboutexpectations within Nokia’s network of customers, production, and R&D(increasingly through electronic networks). In fact, in addition to increasingflexibility, Nokia’s main reason for networking with other producers andR&D institutions is the sharing of signals about future expectations. Thisefficient sharing of information makes it possible to reflect the changes inthe markets immediately in R&D and production.Secondly, Nokia is internally a network organization, offering a platformfor innovators to network with each other and with production and brandingbased on the needs of each project. Nokia has mainly developed its innovationcapacity based on an internal innovation culture, which attracts the besttalent to join it, in contrast to the Cisco model that depends on an innovationstrategy of acquisition which faces serious difficulties when the value of thecompany declines, limiting the financial margin for acquisitions. Whatdrives the varying formation of Nokia’s internal innovation networks, whichthen connect to external networks without internalizing them, is the “Nokiaway” or the Nokia work and management culture. Its three main principlesare “achievement” (forming networks based on shared ambitious goals),“respect” (trusting people and encouraging them to take risks in an environmentwhere failing is permitted), and “continuous learning” (being ready toconstantly challenge and change one’s thinking and wanting to surpassearlier levels of achievement, both individually and collectively).A critical part of an innovation culture, in addition to the state and business,is the intellectual ability of the population. Innovation requires aneducation system that encourages a culture of innovation, creativity, pursuingone’s new ideas, thinking differently. Although, in a complete form, thisis hardly the case in any country, the Finnish education system has proved tobe supportive enough for people to begin creating and implementing theirown ideas. The cases of Linux, Internet relay chat, and encrypted Internetcommunications are good examples of this. Behind all of these ideas wereyoung university students who were passionate about their new creative ideaand then networked with other like-minded individuals on the Net. LinusTorvalds has explained the driving force of Linux hackers like this: “Thereason that Linux hackers do something is that they find it to be very inter-