New Technology-Based Firms In Sweden - A Study Of Their Direct Impact On Industrial Renewal

The purpose of this paper is to analyse some of the ways in which new tcchnology-bascd firms (NTBFs), started after 1975, have contributed to the process of industrial renewal in Sweden. For this purpose, we have developed a novel way of operationalizing the concept of NTBFs and of identifying the population of such companies in Sweden. The method relies heavily on unique data on the educational background of the firm's staff. We found that NTBFs constitute a relatively small but growing phenomenon in Sweden. Although small in magnitude, the firms have contributed to industrial renewal by increasing the knowledge-intensity and science base of Swedish industry and industry-related services. They have also contributed somewhat to the redirection of the knowledge base in Sweden in favour of skills which are central to the innovation process in growth sectors, primarily computer science skills.     

Inflation and relative-price variability — A model for an open economy applied to Sweden

The relationship between inflation and relative-price variability is analyzed empirically in a multi-market, partial information equilibrium model, which incorporates raw materials on the supply side, open economy characteristics and allows different supply responses across markets. The hypothesis that the expected, as well as the unexpected, rate of inflation affects relative-price variability is put forward and tested. The empirical results are consistent with the view that inflation is non-neutral, in the sense that it affects relative prices, and it is also shown that raw material prices as well as foreign demand are important determinants of relative-price variability in the Swedish economy.     

Uncertainty and Climate Change

Uncertainty is pervasive in analysis of climatechange. How should economists allow for this? And how have they allowed for it? This paperreviews both of these questions.     

Investment in Swedish manufacturing: Analysis and forecasts

This paper uses a neoclassical investment model extended with installation costs for capital, agency costs for investment financing, and the possibility of the firm being output constrained as a framework for an empirical analysis of investment behaviour in the Swedish manufacturing industry. The theory is implemented within a multivariate error-correction approach on data covering the time period 1951 to 1995, and we gain the following main results: (1) Tobins average Q is not the sole determinant of investment, neither in the short nor in the long run, and other variables like real output and capital gearing also affect investment activity; (2) the out-of-sample forecasts of the model track the evolution of actual investment growth quite impressively, especially at short- and medium-term horizons (1–2 years); (3) a relative equity-price variable is shown to constitute a good approximation of average Q, both for empirical modelling in general and forecasting in particular.Jel classification: C32, E22, E27We would like to thank Bob Chirinko, Stefan Palmqvist, Anders Vredin, seminar participants at Sveriges Riksbank, and two anonymous referees for helpful comments. Thanks also to Jan Södersten, Uppsala University, who provided us with most of the data for this analysis. All correspondence to Per Jansson.First version received: July 2000/Final version received: November 2002     

Limits to and prospects of entrepreneurship education in the academic context

Process philosophy has drawn attention to the world as ambiguous and ever changing, however also enactable. This makes entrepreneurship a processual phenomenon, rightly addressed as ‘entrepreneuring’. Recognizing not only their cognitive, yet also affective and conative capabilities, makes it possible for human actors to mobilize forces that bring the world to a standstill long enough to create a venture for value creation. This, however, calls for the insight that is different to universal scientific knowledge – episteme and techne – namely, the situated insights that Aristotle addressed as mētis and phronesis. Mētis then concerns alertness and shrewdness and phronesis is about prudence in the context of action. Academic education can only provide these competencies needed to train for entrepreneuring by letting the students travelling across the boundaries of the university. In addition, the dominance of management as an ideology must be proactively dealt with. Three cases in academic training for entrepreneuring, all in the Swedish context, which show radically different ways of dealing with these challenges, are presented in a comparative analysis. The lessons are summarized in general conditions for providing training that advances entrepreneurship students’ situated and actionable insights.     

Revisiting the construction of the Empire State Building: Have we forgotten something?

What’s past is prologue. Or is it? The construction of the Empire State Building (ESB) was not only the fastest erection of a skyscraper ever, but the construction company that took on the job allegedly began with no equipment or supplies that would be adequate for the job. The project was completed ahead of schedule and under budget; instead of 1 year and 6 months as anticipated, it only took 1 year and 45 days. The costs totaled $24.7 million instead of the estimated $43 million. So, we ask, how was this possible and is there something we could learn? Based on a review of existing literature describing the history and construction of the ESB, we outline strategic, operational, and contextual explanations for what appears to be a truly successful megaproject. We illustrate how, for example, inspiration from Henry Ford’s assembly line technique, the uniqueness of the logistics during the construction period, the economic decline of the Depression, and early ideas of concurrent engineering and fast-track construction enabled the success. Our conclusion is that there are lessons to be learned in going back to basics when tackling a megaproject.     

Too hot to handle?: Benefits and costs of stimulating the use of biofuels in the Swedish heating sector

This paper evaluates the impact of changes in current Swedish energy taxation by analyzing a panel of approximately 150 district heating plants in Sweden. We estimate plant-specific production functions and derive the economic repercussions of changing the energy tax system. We also estimate the resulting changes of emissions of Sulfur, NO_x, particulates and CO₂. Our results raise the issue of whether or not the Swedish tax system needs to be complemented with additional environmental taxes, covering, say, emissions of particulates. Because the geographical variation of damages is likely to be substantial, an overall re-assessment of current regulatory schemes seems preferable.     

An accident at a lithuanian fertilizer plant

On March 20, 1989 a tank started to leak spilling large quantities of ammonia which evaporated and caught fire. A layer of warm, unstable ammonia that had accumulated at the bottom of the tank exploded because of the hydrostatic pressure.     

Managerial Incentive Problems: A Dynamic Perspective

The paper studies how a person's concern for a future career may influence his or her incentives to put in effort or make decisions on the job. In the model, the person's productive abilities are revealed over time through observations of performance. There are no explicit output-contingent contracts, but since the wage in each period is based on expected output and expected output depends on assessed ability, an "implicit contract" links today's performance to future wages. An incentive problem arises from the person's ability and desire to influence the learning process, and therefore the wage process, by taking unobserved actions that affect today's performance. The fundamental incongruity in preferences is between the individual's concern for human capital returns and the firm's concern for financial returns. The two need be only weakly related. It is shown that career motives can be beneficial as well as detrimental, depending on how well the two kinds of capital returns are aligned.     

Conceptual confusion – an analysis of the meaning of concepts in technological innovation systems and sociological functionalism

The purpose of this paper is to illustrate how conceptual confusion may be a significant obstacle to cross-disciplinary dialogue. We focus on the relationship between the framework of technological innovation systems (TIS) and sociological functionalism (SF). The paper argues that while there are similarities between the two schools of thought, in particular in the use of the terms ‘structure’ and ‘function’, these are more linguistic than substantive. We demonstrate this by assessing the validity of the spillover to TIS of four main points of critique raised against SF. We conclude by stating some lessons for improving cross-disciplinary communication.