From Natural Resources to High-Tech Production: The Evolution of Industrial Competitiveness in Sweden and Finland

36 Pages Posted: 23 Apr 2003

See all articles by Magnus Blomstrom

Magnus Blomstrom

Stockholm School of Economics - Department of Economics; National Bureau of Economic Research (NBER), at New York; Centre for Economic Policy Research (CEPR)

Ari Kokko

Stockholm School of Economics; National Bureau of Economic Research (NBER)

Date Written: February 2003

Abstract

This Paper describes and analyses the evolution of industrial competitiveness in Sweden and Finland in a long-term perspective. One part of the Paper looks at the foundations for industrial take-off in Sweden, with some focus on the development of institutions for the creation and dissemination of the skills and knowledge needed in the emerging industrial sector. Another part narrows the focus and examines the emergence of Finnish Nokia and Swedish Ericsson as market leaders in the high-tech mobile telecommunications industry. The emphasis here is on the transformation of Nokia from a producer of simple raw material based goods to a knowledge-based high-tech company. A conclusion from this Paper is that an industry's success is a mix of systematic knowledge creation and random technological innovation. The experiences from Sweden and Finland suggest in particular that public policy should provide an appropriate institutional framework to facilitate the sustainable use of land, raw materials, and other resources and promote learning and internationalization.

Keywords: Industrialization, industrial policy

JEL Classification: O14

Suggested Citation

Blomstrom, Magnus and Kokko, Ari, From Natural Resources to High-Tech Production: The Evolution of Industrial Competitiveness in Sweden and Finland (February 2003). CEPR Discussion Paper No. 3804. Available at SSRN: https://ssrn.com/abstract=397421

Magnus Blomstrom (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46 8 736 9265 (Phone)
+46 8 342 818 (Fax)

National Bureau of Economic Research (NBER), at New York

365 Fifth Avenue, 5th Floor
New York, NY 10016-4309
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Ari Kokko

Stockholm School of Economics ( email )

P.O. Box 6501
Stockholm
Sweden
+46 8 736 9365 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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