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Innovation Trends and Industrial Renewal in Finland and Sweden 1970-2013

Kander, Astrid LU ; Taalbi, Josef LU ; Oksanen, Juha; Sjöö, Karolin LU and Rilla, Nina (2017) In Lund Papers in Economic History: General Issues
Abstract
We examine trends in innovation output for two highly ranked innovative countries: Finland and Sweden (1970-2013). Our novel dataset, collected using the LBIO (literature-based innovation output) method, suggests that the innovation trends are positive for both countries, despite an extended downturn in the 1980s. The findings cast some doubt on the proposition that the current stagnation of many developed countries is due to a lack of innovation and investment opportunities. Our data show that Finland catches up to, and passes, Sweden in innovation output in the 1990s. In per capita terms, Finland stays ahead throughout the period. We find that the strong Finnish performance is largely driven by innovation increase in just a handfull of... (More)
We examine trends in innovation output for two highly ranked innovative countries: Finland and Sweden (1970-2013). Our novel dataset, collected using the LBIO (literature-based innovation output) method, suggests that the innovation trends are positive for both countries, despite an extended downturn in the 1980s. The findings cast some doubt on the proposition that the current stagnation of many developed countries is due to a lack of innovation and investment opportunities. Our data show that Finland catches up to, and passes, Sweden in innovation output in the 1990s. In per capita terms, Finland stays ahead throughout the period. We find that the strong Finnish performance is largely driven by innovation increase in just a handfull of industries. Both countries saw a rise in innovation during the dot-com era and the structural changes that followed. Since 2000 however, Sweden has outperformed Finland in terms of total innovations, especially in machinery and ICT, while the Finnish rate of innovation has stabilized. We suggest that these patterns may be explained by different paths of industrial renewal. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
innovation, literature-based innovation output, industrial renewal, structural decomposition, structural change
in
Lund Papers in Economic History: General Issues
issue
167
pages
41 pages
publisher
Department of Economic History, Lund University
language
English
LU publication?
yes
id
10ffe6a6-6d08-44b7-b881-4cdc3450ed22
date added to LUP
2017-12-06 10:35:37
date last changed
2017-12-06 10:35:37
@misc{10ffe6a6-6d08-44b7-b881-4cdc3450ed22,
  abstract     = {We examine trends in innovation output for two highly ranked innovative countries: Finland and Sweden (1970-2013). Our novel dataset, collected using the LBIO (literature-based innovation output) method, suggests that the innovation trends are positive for both countries, despite an extended downturn in the 1980s. The findings cast some doubt on the proposition that the current stagnation of many developed countries is due to a lack of innovation and investment opportunities. Our data show that Finland catches up to, and passes, Sweden in innovation output in the 1990s. In per capita terms, Finland stays ahead throughout the period. We find that the strong Finnish performance is largely driven by innovation increase in just a handfull of industries. Both countries saw a rise in innovation during the dot-com era and the structural changes that followed. Since 2000 however, Sweden has outperformed Finland in terms of total innovations, especially in machinery and ICT, while the Finnish rate of innovation has stabilized. We suggest that these patterns may be explained by different paths of industrial renewal.},
  author       = {Kander, Astrid and Taalbi, Josef and Oksanen, Juha and Sjöö, Karolin and Rilla, Nina},
  keyword      = {innovation,literature-based innovation output,industrial renewal,structural decomposition,structural change},
  language     = {eng},
  note         = {Working Paper},
  number       = {167},
  pages        = {41},
  publisher    = {Department of Economic History, Lund University},
  series       = {Lund Papers in Economic History: General Issues},
  title        = {Innovation Trends and Industrial Renewal in Finland and Sweden 1970-2013},
  year         = {2017},
}