Nokia’s $200m R&D ransom spawned a decade of paranoia
A mass exodus of Nokia R&D engineers in 1997 led to the company paying $200m in what amounted to retainer bribes, newly released documents in Finland confirm today, with the company held to ransom by a surprise staff walkout. The paperwork reveals that product developer Jyrki Hallikainen persuaded 44 of his R&D peers to ditch Nokia and set up a new company with the help of Philips, Helsingen Sanomat reports, forcing then mobile phone chief Pekka Ala-Pietilä to open the company checkbook and sign off roughly $4.5m apiece in order to convince them not to leave. Hallikainen insisted on striking out, setting up cellphone ODM Microcell. Eventually, though, the lure of Nokia’s cash drew ex-employees back to the firm, Philips withdrew its support, and Microcell was sold to Flextronics in 2003 for $80m (as well as taking on the company’s $120m in debt). The incident, it’s claimed, left Nokia execs deeply concerned about corporate espionage and secrecy, including accusing staff who had