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Is Small Beautiful: The Case of the Swedish IT Industry
The Ratio Institute, Stockholm, Sweden . (Företagandet och företagandets villkor)ORCID iD: 0000-0002-5610-8526
2004 (English)In: Entrepreneurship and Regional Development, ISSN 0898-5626, E-ISSN 1464-5114, Vol. 16, no 4, 271-287 p.Article in journal (Refereed) Published
Abstract [en]

In this paper, the net job contribution of new and small firms in the Swedish Information Technology (IT) industry is investigated. The analysis is based on an extensive data set covering all IT firms in Sweden between 1993 and 1998. The smallest firms and new firms have experienced an extraordinarily fast growth and have created all net jobs in the industry, while large and old firms were major job losers. Private firms and independent firms, furthermore, grew faster than firms owned by the government and firms in enterprise groups. The results raise questions about Swedish economic policy and institutions, which have systematically disfavoured exactly those firms that the analysis shows have generated most of the growth in employment. The conducted policies (mainly introduced in the late 1960s and early 1970s) may partly explain the low economic growth observed in Sweden during the last three decades.

Place, publisher, year, edition, pages
Routledge, 2004. Vol. 16, no 4, 271-287 p.
Keyword [en]
small firm growth, firm age, institutions, Gibrat's law, IT industry
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-42762DOI: 10.1080/0898562042000263258ISI: 000223173000002Scopus ID: 2-s2.0-3943056747OAI: oai:DiVA.org:oru-42762DiVA: diva2:789317
Available from: 2015-02-18 Created: 2015-02-18 Last updated: 2016-09-22Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf