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Exploring regional differences in the regional capacity to absorb displacements

PublicationBook chapter
Företagandets villkor, Företagsnedläggning, Ingrid Ros, Kristina Nyström, Regional utveckling, Sysselsättning

Abstract

Extract: Every year there is substantial turbulence in economies with respect to establishing new firms and business closures. Job displacement, i.e. an involuntary loss of jobs due to economic downturns or structural changes affects millions of workers each year. A recent cross-country comparison by the Organisation for Economic Co-operation and Development (OECD) (2013) reveals that displacements affect 2–7 percent of employees every year. In the Swedish case, an average displacement rate of about 2 percent is reported for the time period 2000–2008. According to Tillvaxtanalys (2009)1 more than 100 000 Swedish employees lose their jobs annually due to business closures.2 Through the process of creative destruction, in which old and obsolete firms exit due to the entry of new and more productive firms, the resources used in the exiting firms are reallocated and possibly more efficiently used in the new firms. However, in some cases displaced workers are not able to find a new job, especially if, for example, the employee’s competences do not match the current demands in the labor market. Furthermore, the possibilities to find a new job after a closure may vary substantially depending on the regional conditions in the labor market. It may, for instance, be more difficult to find a new job after a business closure if the unemployment rate in the region is already high or if the displacement is connected to the closure of a locally dominant firm.

Nyström, K., & Viklund Ros, I. (2017). Exploring regional differences in the regional capacity to absorb displacements. In C. Karlsson, M. Andersson, & L. Bjerke (Eds.), Geographies of Growth (pp. 19-47). Cheltenham, UK: Edward Elgar Publishing. DOI: 10.4337/9781785360602.00009

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Exploring regional differences in the regional capacity to absorb displacements
BokkapitelPublication
Nyström, K., & Viklund Ros, I.
Publication year

2017

Abstract

Extract: Every year there is substantial turbulence in economies with respect to establishing new firms and business closures. Job displacement, i.e. an involuntary loss of jobs due to economic downturns or structural changes affects millions of workers each year. A recent cross-country comparison by the Organisation for Economic Co-operation and Development (OECD) (2013) reveals that displacements affect 2–7 percent of employees every year. In the Swedish case, an average displacement rate of about 2 percent is reported for the time period 2000–2008. According to Tillvaxtanalys (2009)1 more than 100 000 Swedish employees lose their jobs annually due to business closures.2 Through the process of creative destruction, in which old and obsolete firms exit due to the entry of new and more productive firms, the resources used in the exiting firms are reallocated and possibly more efficiently used in the new firms. However, in some cases displaced workers are not able to find a new job, especially if, for example, the employee’s competences do not match the current demands in the labor market. Furthermore, the possibilities to find a new job after a closure may vary substantially depending on the regional conditions in the labor market. It may, for instance, be more difficult to find a new job after a business closure if the unemployment rate in the region is already high or if the displacement is connected to the closure of a locally dominant firm.

Startups, financing and geography – findings from a survey
Book chapterPublication
Bjuggren, P.-O., & Elmoznino Laufer, M.
Publication year

2018

Abstract

This chapter investigates the importance of bank loans for the financing of startups and how location matters for expansion plans and financing. The two main questions posed are: what does the financing of Swedish corporate startups look like, and how does location matter for expansion plans and financing? To provide answers to these questions, both survey data and registry data have been used. The survey data are from a questionnaire sent out to startups listed in the files of the Swedish Jobs and Society Foundation. We looked at corporations founded during the period 2009–2013 that are family firms in terms of ownership structure. The survey indicated that bank loans are rare. Essentially, the entrepreneur personally takes most of the business risk. Combining registry data with the qualitative data from the survey, we used regression analysis to study differences due to location. The regression analysis showed that the degree of urbanization matters for plans for expansion. In the three most urbanized areas, the startup firms had plans to expand their business both at home and abroad. In the other urbanized areas, the focus was on expansion at home.

Reaping Value from Digitalization in Swedish Manufacturing Firms
Book chapterPublication
Mähring, M., Wennberg, K., & Demir, R.
Publication year

2018

Abstract

Excerpt: In this chapter, we take a fresh look at what is actually happening in the area of digitalization, with a particular focus on the Swedish manufacturing sector. […] We particularly focus upon patterns in the ways in which they seek to develop innovations and explore new business models from their activities related to product sensors and wireless data, cloud-based data warehouses, computer-aided manufacturing and 3D printing, big data technologies, and application programming interfaces (APIs). Our findings suggest that while many Swedish industrial firms have developed a strong edge through a combination of high-quality products, international presence, and decentralization, the latter in particular poses challenges when it comes to digital transformation. Digitalization may necessitate large investments across business segments, standardisation, and knowledge sharing regarding both customers and digital solutions in order to create new customer offerings. Points for reflection are then discussed, along with recommendations for scholars that are seeking to develop new and relevant knowledge by studying the transformation of Swedish industry, as well as for managers seeking to benchmark their digitalization activities to others.

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