IDEAS home Printed from https://ideas.repec.org/a/taf/entreg/v16y2004i4p271-287.html
   My bibliography  Save this article

Is small beautiful? The case of the Swedish IT industry

Author

Listed:
  • Dan Johansson

Abstract

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.

Suggested Citation

  • Dan Johansson, 2004. "Is small beautiful? The case of the Swedish IT industry," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(4), pages 271-287, July.
    • Handle: RePEc:taf:entreg:v:16:y:2004:i:4:p:271-287
    DOI: 10.1080/0898562042000263258
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0898562042000263258
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0898562042000263258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dan Johansson, 2005. "The Turnover of Firms and Industry Growth," Small Business Economics, Springer, vol. 24(5), pages 487-495, June.
    2. Mervyn A. King & Don Fullerton, 1984. "The United Kingdom," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 31-86, National Bureau of Economic Research, Inc.
    3. Acs,Zoltan J. & Carlsson,Bo & Karlsson,Charlie (ed.), 1999. "Entrepreneurship, Small and Medium-Sized Enterprises and the Macroeconomy," Cambridge Books, Cambridge University Press, number 9780521621052, January.
    4. Mervyn A. King & Don Fullerton, 1984. "Introduction to "The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany"," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 1-6, National Bureau of Economic Research, Inc.
    5. Zoltán J. Ács (ed.), 1996. "Small Firms And Economic Growth," Books, Edward Elgar Publishing, volume 0, number 524.
    6. Mervyn A. King & Don Fullerton, 1984. "The United States," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 193-267, National Bureau of Economic Research, Inc.
    7. Mervyn A. King & Don Fullerton, 1984. "The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany," NBER Books, National Bureau of Economic Research, Inc, number king84-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mehdi Ben Slimane & Leila Baghdadi, 2019. "How internationalization affects firms' growth in the MENA region? A quantile regression approach," Economics Bulletin, AccessEcon, vol. 39(2), pages 751-771.
    2. Luis Fernando Lanaspa Santolaria & Irene Olloqui Cuartero & Fernando Sanz Garcia, 2012. "Common Trends and Linkages in the US Manufacturing Sector, 1969–2000," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 36(5), pages 1093-1111, September.
    3. Alexander McKelvie & Johan Wiklund & Anna Brattström, 2018. "Externally Acquired or Internally Generated? Knowledge Development and Perceived Environmental Dynamism in New Venture Innovation," Entrepreneurship Theory and Practice, , vol. 42(1), pages 24-46, January.
    4. Edquist, Harald, 2005. "The Swedish ICT miracle -- myth or reality?," Information Economics and Policy, Elsevier, vol. 17(3), pages 275-301, July.
    5. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
    6. Silvina A. Romano & Jon Mikel Zabala‐Iturriagagoitia, 2022. "Davids versus Goliaths: Epigenetic dynamics and structural change in the Swedish innovation system," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1737-1761, December.
    7. José A. Belso Martínez, 2005. "Equilibrium entrepreneurship rate, economic development and growth. Evidence from Spanish regions," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(2), pages 145-161, March.
    8. Eko Atmadji, 2012. "Fuel price increase and manufacturing firms survival in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 2-14, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henrekson, Magnus & Johansson, Dan, 2010. "Firm Growth, Institutions and Structural Transformation," Ratio Working Papers 150, The Ratio Institute.
    2. Almas Heshmati & Dan Johansson & Carl Magnus Bjuggren, 2010. "Effective Corporate Tax Rates and the Size Distribution of Firms," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 297-317, September.
    3. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    4. Henrekson, Magnus & Johansson, Dan, 1999. "Institutional Effects on the Evolution of the Size Distribution of Firms," Small Business Economics, Springer, vol. 12(1), pages 11-23, February.
    5. Leo Bonato, 1999. "Price stability: Some costs and benefits in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 33(1), pages 27-49.
    6. Sanz Labrador, Ismael & Sanz-Sanz, José Félix, 2013. "Política fiscal y crecimiento económico: consideraciones microeconómicas y relaciones macroeconómicas," Macroeconomía del Desarrollo 5367, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Daphne Chen & Shi Qi & Don Schlagenhauf, 2018. "Corporate Income Tax, Legal Form of Organization, and Employment," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(4), pages 270-304, October.
    8. John B. Burbidge & Kirk A. Collins & James B. Davies & Lonnie Magee, 2012. "Effective tax and subsidy rates on human capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 189-219, February.
    9. R Jackman, 1987. "Paying for Local Government: An Appraisal of the British Government's Proposals for Nondomestic Rates," Environment and Planning C, , vol. 5(1), pages 89-98, March.
    10. Matt Benge, 1998. "Depreciation Provisions and Investment Incentives under Full Imputation," The Economic Record, The Economic Society of Australia, vol. 74(227), pages 329-345, December.
    11. Ellen R. McGrattan & Edward C. Prescott, 2005. "Taxes, Regulations, and the Value of U.S. and U.K. Corporations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 767-796.
    12. Philip Bunn & Garry Young, 2004. "Corporate capital structure in the United Kingdom: determinants and adjustment," Bank of England working papers 226, Bank of England.
    13. Steven J. Davis & Magnus Henrekson, 1997. "Industrial Policy, Employer Size, and Economic Performance in Sweden," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 353-398, National Bureau of Economic Research, Inc.
    14. Ligia Alba Melo-Becerra & Héctor Zárate-Solano & Andrés Camilo Gómez-Molina, 2018. "Elasticidad del ingreso corporativo gravable en Colombia," Borradores de Economia 1046, Banco de la Republica de Colombia.
    15. Magnus Henrekson & Tino Sanandaji, 2011. "Entrepreneurship and the theory of taxation," Small Business Economics, Springer, vol. 37(2), pages 167-185, September.
    16. Gunnar Rietz & Magnus Henrekson, 2015. "Swedish Wealth Taxation (1911–2007)," Palgrave Macmillan Books, in: Magnus Henrekson & Mikael Stenkula (ed.), Swedish Taxation, chapter 0, pages 267-302, Palgrave Macmillan.
    17. Niklas Elert & Magnus Henrekson, 2019. "The collaborative innovation bloc: A new mission for Austrian economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 295-320, December.
    18. Thomann Christian, 2014. "Recent developments in Corporate Taxation in Sweden," Nordic Tax Journal, Sciendo, vol. 2014(2), pages 195-214, November.
    19. Magnus Henrekson & Jesper Roine, 2007. "Promoting Entrepreneurship in the Welfare State," Chapters, in: David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), Handbook of Research on Entrepreneurship Policy, chapter 5, Edward Elgar Publishing.
    20. Alstadsæter, Annette & Jacob, Martin & Michaely, Roni, 2017. "Do dividend taxes affect corporate investment?," Journal of Public Economics, Elsevier, vol. 151(C), pages 74-83.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:entreg:v:16:y:2004:i:4:p:271-287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TEPN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.