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In the 1990s, the Euro‐Nordic industry leaders in wireless communications enjoyed a period of explosive growth as the vision of the mobile Internet captured the market momentum. But the bursting of the Internet bubble, excessive 3G licence fees and the general industry downturn has dramatically affected Europe’s wireless future. This article examines the reasons for the success of Europe’s wireless communications in the 1990s, explains its vulnerabilities and draws lessons for the future.

This article examines the dynamics of wireless R&D as a combined function of technology and market evolution, focusing on the management and organization of wireless R&D. From the postwar era to the late 1990s, the management and organization of wireless R&D capabilities has been effectively reversed. Industry thrust has shifted from closed specifications, central innovation and domestic market to open specifications, distributed innovation and global networking. The old era is reflected by the classic Bell Labs; the new era by Nokia. Due to the alternation of sustaining and disruptive change, no wireless company can survive without incessant innovation. In this rivalry, the winners are companies that best match their organizational capabilities with the changing industry opportunities.