Sweden’s Slowdown: The Impact on Interventionism on Entrepreneurship.

PublicationBook chapter
Dan Johansson, Entreprenörer, Entreprenörpolicy, Entreprenörskap, Företagandets villkor, Tillväxt


Why do some nations become rich while others remain poor? Traditional mainstream economic growth theory has done little to answer this question—during most of the twentieth century the theory focused on models that assumed growth was a simple function of labor, capital, and technology. Through a collection of case studies from Asia and Africa to Latin America and Europe, Making Poor Nations Rich argues for examining the critical role entrepreneurs and the institutional environment of private property rights and economic freedom play in economic development.

Making Poor Nations Rich begins by explaining how entrepreneurs create economic growth and why some institutional environments encourage more productive entrepreneurship than others. The volume then addresses countries and regions that have failed to develop because of barriers to entrepreneurship. Finally, the authors turn to countries that have developed by reforming their institutional environment to protect private property rights and grant greater levels of economic freedom.

The overall lesson from this volume is clear: pro-market reforms are essential to promoting the productive entrepreneurship that leads to economic growth. In countries where this institutional environment is lacking, sustained economic development will remain illusive.

Johansson, D. (2007). ”Sweden’s Slowdown: The Impact on Interventionism on Entrepreneurship.” In Powell, B. (Eds.) Making Poor Nations Rich: Entrepreneurship and the Process of Economic Development (pp. 250-280). Stanford: Stanford University Press.

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The Theory of the Experimentally Organized Economy and Competence Blocs
Article (with peer review)Publication
Johansson, D.
Publication year



This article presents the theory of the experimentally organized economy and competence blocs. The theory assumes that information is immense and that economic actors are boundedly rational. This makes practically all economic activities to some extent uncertain and unpredictable; they become experimental in nature. Economic growth is, hence, viewed as an evolutionary process of the discovery, use and selection of knowledge. So-called competence blocs—the minimum set of agents with different, but complementary competencies required to generate and commercialize new combinations—are identified as necessary for efficient resource allocation. The incentives given by the institutions to the actors in the competence bloc are crucial for economic performance.

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