A revised perspective on innovation policy for renewal of mature economies – Historical evidence from finance and telecommunications in Sweden 1980–1990

PublicationArticle (with peer review)

Christian Sandström, Christofer Laurell, Företagandets villkor, Innovation, Jerker Moodysson, Klas Eriksson, Mirko Ernkvist, Rasmus Nykvist

Abstract

What is the role of innovation policy for accomplishing renewal of mature industries in Western economies? Drawing upon an unusually rich dataset spanning 9752 digitized archival documents, we categorize and code decisions taken by policymakers on several levels while also mapping and quantifying the strategic activities of both entrant firms and incumbent monopolists over a decade. Our data concerns two empirical cases from Sweden during the time period 1980–1990: the financial sector and the telecommunications sector. In both industries, a combination of technological and institutional upheaval came into motion during this time period which in turn fueled the revitalization of the Swedish economy in the subsequent decades. Our findings show that Swedish policymakers in both cases consistently acted in order to promote the emergence of more competition and de novo entrant firms at the expense of established monopolies. The paper quantifies and documents this process while also highlighting several enabling conditions. In conclusion, the results indicate that successful innovation policy in mature economies is largely a matter of strategically dealing with resourceful vested interest groups, alignment of expectations, and removing resistance to industrial renewal.

Eriksson, K., Ernkvist, M., Laurell, C., Moodysson, J., Nykvist, R. & Sandström, C. (2019). A revised perspective on innovation policy for renewal of mature economies – Historical evidence from finance and telecommunications in Sweden 1980–1990. Technological Forecasting and Social Change, 147, 152-162. DOI: 10.1016/j.techfore.2019.07.001.

Ratio Working Paper No. 362: Interest groups and the failure of transformative innovation policy – Insights from the ethanol car bubble in Sweden 2003-2013

Working paperPublication

Björnemalm, R., & Sandström, C.

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Publication year

2023

Published in

Ratio Working paper series.

Abstract

Literature on innovation policy has so far paid little attention to policy failure and the mechanisms leading to failure. We describe the Swedish bubble in ethanol cars 2003-2013 and explain why well intended policies may end up with unsatisfactory results. Directives from the European Union forced policymakers in Sweden to act swiftly and the Swedish government put in place The Pump law which forced gas stations to supply ethanol as a fuel from 2006 and onwards. In combination with targeted tax deductions for ethanol cars, a sharp increase in demand took place in 2006-2008. As these started to experience engine problems by 2009-2010, demand declined. Tax deductions were subsequently altered in order to also include cars with very low CO2 emissions, a shift that contributed further to the downfall of ethanol cars. Our data suggests that domestic car manufacturers Volvo and Saab, along with Ford benefited from the ethanol policies as their combined market share for green cars surged from 12 to 75 percent 2005-2008. Ethanol was competitive in the political domain as the fuel was backed by the Centre Party and the associated farmers’ lobby group, but lacked economic, technological and environmental competitiveness. Our findings suggest that innovation policies aimed at supporting new technologies against vested interests may instead end up extending established interests as policies are put in place under the influence of various stakeholders.

Social media analytics for innovation management research: A systematic literature review and future research agenda

Article (with peer review)Publication

Geissinger, A., Laurell, C., Öberg, C., & Sandström, C.

Publication year

2023

Published in

Technovation, 123, 102712.

Abstract

New trends in innovation management may require new research methods. Social media analytics (SMA)—a method for capturing and analyzing data from user-generated content published on online platforms—has emerged as a complement or even alternative to more traditional research methods. This article systematically reviews and assesses the use of SMA and its potential for innovation management research. Our results show that use of SMA is still in an emergent phase, although it has become increasingly popular over the past decade. Our literature review illustrates that SMA provides new opportunities for innovation management scholars to enhance customer-, market-, technology-, and society-focused innovation research in several ways. In this paper we develop a research agenda and suggest areas for future research using SMA in innovation management.

The article can be accessed here.

Evaluating Evaluations of Innovation Policy: Exploring Reliability, Methods, and Conflicts of Interest

Book chapterPublication

Collin, E., Sandström, C., & Wennberg, K.

Publication year

2022

Published in

Questioning the Entrepreneurial State, 157.

Abstract

Expansions of innovation policies have been paralleled with an increase in the evaluations of such policies. Yet, there are few systematic evaluations of how such evaluations are conducted, by whom, and their overall conclusions. We analyze 110 evaluations of innovation policy in Sweden from 2005 to 2019. Our findings show that the majority of these evaluations are positive, about one-third are neutral in their conclusions, and very few are negative. The majority of evaluations were conducted by consulting firms, close to one-third by expert government agencies, and around 10% by university researchers or as self-evaluations by the governmental agencies responsible for the policy themselves. Few evaluations employed causal methods to assess the potential effects of policies. We discuss conflicts of interest and question the reliability of evaluations of innovation policy.

Abstract

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