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Financial crises and industrial development: The new Swedish model

PublicationBook chapter
Andreas Stephan, Finanskris, Företagandets villkor, Industri, Svenska modellen

Abstract

As a small export-oriented country Sweden’s economy is more exposed to international economic crises than larger economies are. Compared to many other countries’ economies, Sweden’s economy recovered quickly from the last financial crisis of 2008/2009. Domestic banks did not experience severe trouble nor did government deficits increase to irresponsible levels. The long-term negative trend of employment in the manufacturing industry accelerated during the crisis, but has also recovered to some extent, thanks to a positive productivity growth which is among the highest in Europe.

The foremost reason that Sweden mastered the last crisis better than most other European countries is that Sweden learned from her experience with the severe financial crisis 15 years before. Since the crisis in the 1990s, there have been ongoing discussions about how to reform Sweden and how to make it less vulnerable to future crises. Many reforms have been implemented since the mid-1990s in almost all areas of the welfare state. Major actors in Sweden, in response to the previous crisis, have identified the importance of having positive industrial relations. The manufacturing sector is seen as one of the main pillars of the national wealth in Sweden. Because it is so important for the Swedish economy, labor market parties have agreed to take a long-term perspective to secure Sweden’s international industrial competiveness. This shows that also the new Swedish model is heavily rooted in the long-standing Swedish tradition of consensus-based labor market models.

Stephan, A. (2015). “Financial crises and industrial development: The new Swedish model”. In F. Gerlach, M. Schietinger, & A. Ziegler (Eds.), A strong Europe – but only with a strong manufacturing sector: Policy concepts and instruments in ten EU member states (pp. 276-295). Düsseldorf: Schüren Verlag.

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Financial crises and industrial development: The new Swedish model
BokkapitelPublication
Stephan, A.
Publication year

2015

Abstract

As a small export-oriented country Sweden’s economy is more exposed to international economic crises than larger economies are. Compared to many other countries’ economies, Sweden’s economy recovered quickly from the last financial crisis of 2008/2009. Domestic banks did not experience severe trouble nor did government deficits increase to irresponsible levels. The long-term negative trend of employment in the manufacturing industry accelerated during the crisis, but has also recovered to some extent, thanks to a positive productivity growth which is among the highest in Europe.

The foremost reason that Sweden mastered the last crisis better than most other European countries is that Sweden learned from her experience with the severe financial crisis 15 years before. Since the crisis in the 1990s, there have been ongoing discussions about how to reform Sweden and how to make it less vulnerable to future crises. Many reforms have been implemented since the mid-1990s in almost all areas of the welfare state. Major actors in Sweden, in response to the previous crisis, have identified the importance of having positive industrial relations. The manufacturing sector is seen as one of the main pillars of the national wealth in Sweden. Because it is so important for the Swedish economy, labor market parties have agreed to take a long-term perspective to secure Sweden’s international industrial competiveness. This shows that also the new Swedish model is heavily rooted in the long-standing Swedish tradition of consensus-based labor market models.

Are public research spin-offs more innovative?
Article (with peer review)Publication
Stephan, A.
Publication year

2014

Abstract

The main purpose of this paper is to analyse whether research spin-offs, that is, spin-offs from either public research institutes or universities, have greater innovation capabilities than comparable knowledge-intensive firms created in other ways. Using a sample of about 2,800 firms from highly innovative sectors, propensity score matching is used to create a sample group of control firms that is comparable to the group of spin-offs. The article provides evidence that the 121 research spin-offs investigated have more patent applications and more radical product innovations, on average, compared to similar firms. The results also show that research spin-offs’ superior innovation performance can be explained by their high level of research cooperation and by location factors. An urban region location and proximity to the parent institution are found to be conducive to innovation productivity. The article also finds evidence that research spin-offs are more successful in attracting support from public innovation support programmes in comparison to their peers.

Related content: Working paper No. 222

Are public research spin-offs more innovative?
Artikel (med peer review)Publication
Stephan, A.
Publication year

2014

Abstract

The main purpose of this paper is to analyse whether research spin-offs, that is, spin-offs from either public research institutes or universities, have greater innovation capabilities than comparable knowledge-intensive firms created in other ways. Using a sample of about 2,800 firms from highly innovative sectors, propensity score matching is used to create a sample group of control firms that is comparable to the group of spin-offs. The article provides evidence that the 121 research spin-offs investigated have more patent applications and more radical product innovations, on average, compared to similar firms. The results also show that research spin-offs’ superior innovation performance can be explained by their high level of research cooperation and by location factors. An urban region location and proximity to the parent institution are found to be conducive to innovation productivity. The article also finds evidence that research spin-offs are more successful in attracting support from public innovation support programmes in comparison to their peers.

Related content: Working paper No. 222

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