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Innovation and industrial renewal in Sweden, 1970–2007

Sjöö, Karolin LU (2016) In Scandinavian Economic History Reveiw 64(3). p.258-277
Abstract

This study explores the question of whether the Swedish innovation output of the 1970s and 1980s (and the following decades) indicates structural lock-in or renewal. It is motivated by inconsistent explanations in the current literature about the relation between the economic slowdown and subsequent industrial renewal, as well as a lack of research focusing, in this context, on the primary driver of economic growth and structural change: innovation. By observing the number and type of innovations as they hit the market, the data in this paper tell a real time story about micro level innovation activity during the time that the economic crisis unfolds. The analysis considers Swedish innovation output between 1970 and 2007, characterising... (More)

This study explores the question of whether the Swedish innovation output of the 1970s and 1980s (and the following decades) indicates structural lock-in or renewal. It is motivated by inconsistent explanations in the current literature about the relation between the economic slowdown and subsequent industrial renewal, as well as a lack of research focusing, in this context, on the primary driver of economic growth and structural change: innovation. By observing the number and type of innovations as they hit the market, the data in this paper tell a real time story about micro level innovation activity during the time that the economic crisis unfolds. The analysis considers Swedish innovation output between 1970 and 2007, characterising the number of significant innovations, their novelty, and their origin (including size of firm and industry sector). Three central findings emerge, defined by both the time period and the character of innovations. First, the magnitude of innovation activity peaks in the late 1970s to early 1980s. Second, starting in the late 1970s, small firms begin to outperform large firms in terms of both innovation quantity and quality (i.e. world market novelties). Third, the 1980s saw a distinct shift in the industrial origin of innovations, with software and telecom becoming the leaders in innovation output. The findings suggest that the observed industrial renewal is more nuanced than what has emerged from previous research.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
industrial renewal, Innovation, innovation indicators, literature-based innovation output (LBIO), technological change
in
Scandinavian Economic History Reveiw
volume
64
issue
3
pages
258 - 277
publisher
Routledge
external identifiers
  • scopus:84982296354
  • wos:000390047900006
ISSN
0358-5522
DOI
10.1080/03585522.2016.1218928
language
English
LU publication?
yes
id
3c74eb93-75c3-41cd-8587-03054d78400f
date added to LUP
2016-12-02 14:52:37
date last changed
2017-09-18 11:29:38
@article{3c74eb93-75c3-41cd-8587-03054d78400f,
  abstract     = {<p>This study explores the question of whether the Swedish innovation output of the 1970s and 1980s (and the following decades) indicates structural lock-in or renewal. It is motivated by inconsistent explanations in the current literature about the relation between the economic slowdown and subsequent industrial renewal, as well as a lack of research focusing, in this context, on the primary driver of economic growth and structural change: innovation. By observing the number and type of innovations as they hit the market, the data in this paper tell a real time story about micro level innovation activity during the time that the economic crisis unfolds. The analysis considers Swedish innovation output between 1970 and 2007, characterising the number of significant innovations, their novelty, and their origin (including size of firm and industry sector). Three central findings emerge, defined by both the time period and the character of innovations. First, the magnitude of innovation activity peaks in the late 1970s to early 1980s. Second, starting in the late 1970s, small firms begin to outperform large firms in terms of both innovation quantity and quality (i.e. world market novelties). Third, the 1980s saw a distinct shift in the industrial origin of innovations, with software and telecom becoming the leaders in innovation output. The findings suggest that the observed industrial renewal is more nuanced than what has emerged from previous research.</p>},
  author       = {Sjöö, Karolin},
  issn         = {0358-5522},
  keyword      = {industrial renewal,Innovation,innovation indicators,literature-based innovation output (LBIO),technological change},
  language     = {eng},
  number       = {3},
  pages        = {258--277},
  publisher    = {Routledge},
  series       = {Scandinavian Economic History Reveiw},
  title        = {Innovation and industrial renewal in Sweden, 1970–2007},
  url          = {http://dx.doi.org/10.1080/03585522.2016.1218928},
  volume       = {64},
  year         = {2016},
}