This document summarizes a presentation given by Pontus Braunerhjelm on challenges to the Nordic model from a Swedish perspective. It discusses international trends showing a shift in manufacturing shares from developed to developing nations like China. It also examines what makes clusters successful, noting the importance of knowledge accumulation and conversion as well as critical mass. The Nordic model is evaluated in terms of ease of doing business, innovation as measured by R&D spending, and flexibility to trade shifts like growing Chinese imports. The presentation provides a framework for cluster policy focusing on education, entrepreneurship, infrastructure, and partnerships to support knowledge development and sharing in clusters.
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
TCI2013 Challenges to the Nordic model: a Swedish perspective
1. Challenges to the Nordic Model: a Swedish perspective
Pontus Braunerhjelm
Societal Challenges and Clusters: the Scandinavian Model vs other
Models
6 September 2013
2. TCI Annual Global Conference 2013
Challenges to the Nordic Model: A Swedish perspective
Pontus Braunerhjelm, Managing Director Swedish Entrepreneurship Forum
Professor in Economics, The Royal Institute of Technology
• International trends
• What makes a cluster?
• The Nordic model/position
• Cluster policies
4. … and a growing role for services ...
4Source: OECD-WTO, Trade in Value Added database,
Share of service value added in total gross export, 1985-2009
6. Business investment in KBC and tangible assets (% adjusted GDP, 2010)
Source: OECD calculations based on INTAN-Invest, Eurostat and multiple national sources.
Increasing investments in KBC
6
7. New firms matter – they account for 35-65% of job creation
The role of young firms (less than 5 years old) for job creation, average from 2001 to 2011.
8. Employment growth in internationally traded sectors,
Sweden, 2005-2015
Källa: Bjorvatn m fl. (2008)
9.
10. ”Silicon Valley is probably the only place on
earth not trying to copy Silicon Valley”
Robert Metcalfe, 1998
11. What makes a cluster?
Copycats –
but what about the igniting spark and growth potential for clusters?
Serendipity?
Role for policy?
Limited to providing the infra-structure of the cluster?
12. What makes a cluster?
3-stage processes – Knowledge base, entrepreneurs and
service providers (VC, legal competencies, etc.)
Variety, heterogeneity and selection mechanisms - dynamics
Pre-existing conditions – unpredictable whether it leads to
agglomeration and consolidation of clusters. Once seed is
planted – is the local system fit to emerge and grow?
Highly influenced by policy - not only climate (Hollywood) or
individual brilliance (Silicon Valley)
14. Stage
Share of value
added
Pre-fab services Post-fab servicesFabrication
1970s & 1980s value
distribution
‘Smile curve’: Distribution of value
Post-1990 value
distribution
15. Economy
Ease of Doing
Business Rank
Starting a
Business
Dealing with
Construction
Permits
Registering
Property
Getting Credit
Enforcing
Contracts
Denmark 5 11 2 2 9 20
Norway 6 13 7 3 25 4
Finland 11 17 12 8 16 9
Sweden 13 19 8 13 16 17
Iceland 14 15 15 5 16 3
Average , Norden 9,8 15 8,8 6,2 16,4 10,6
Averrage, OECD-
high income
29,3 16 16 16 14,4 15,9
The Nordic Model
An international comparison
25. Change of Share of Chinese Imports
Selected European Countries
0.00
0.50
1.00
1.50
2.00
2000 2005 2010
(Source: UNCTAD (2011), Ketel 2012.)
Sweden
Germany
Switzerland
Finland
Norway
Denmark
Share of Country in Chinese
Imports, Level in 2000 = 1
27. Lessons for policy-makers
“at every step of the way, there were choices – political and
economic – that provide real alternatives…path dependency
..is not a story of inevitability…”
North 1990