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| Author: | Johansson, D. |
| Title: | Is small beautiful? The case of the Swedish IT industry |
| Journal: | Entrepreneurship & Regional Development
2004 : JUL, VOL. 16:4, p. 271-287 |
| Index terms: | Information technology Small business Growth Case studies Sweden Nordic countries Scandinavia |
| Language: | eng |
| Abstract: | This paper investigates the net job contribution of new and small firms in the Swedish Information Technology (IT) industry. The smallest firms and new firms have experienced an extraordinarily fast growth having created all net jobs in the industry, whereas large and old firms were major job losers. The analysis is based on an extensive data set covering all IT firms in Sweden from 1993 to 1998. The results raise questions about Swedish economic policy and institutions, which have systematically disfavoured exactly those firms that the analysis shows having generated most of the growth in employment. The conducted policies (mainly of the late 1960s and the early 1970s) may partly explain the low economic growth observed in Sweden during the last three decades. |
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