SwedenvsNorway #EconomicModel #Startups #TechCompanies
Have you ever wondered why some countries are able to produce more globally recognized companies than others? 🤔 Let’s take a closer look at the case of Sweden and Norway.
Here are some factors to consider:
- Innovation and Entrepreneurial Environment: Sweden has a strong tradition of innovation and entrepreneurship, with a high number of startups per capita compared to Norway.
- Investment in Education and Research: Sweden places a high emphasis on education and research, which contributes to a skilled workforce that can drive innovation.
- Business-friendly Policies: Sweden has policies that support business growth and innovation, such as lower corporate taxes and easier access to funding for startups.
- Global Connectivity: Sweden has a more open economy with strong international trade connections, which can provide more opportunities for companies to expand globally.
While Norway certainly has its own strengths, such as natural resources and a thriving maritime industry, the factors mentioned above may be contributing to Sweden’s success in developing globally renowned companies.
What do you think the key differences are between Sweden and Norway that have led to this outcome? 🌍 Let’s discuss and share our thoughts on what other countries can learn from Sweden’s economic model to foster the growth of great companies!
Here is a list of the largest companies in [Sweden](https://en.wikipedia.org/wiki/List_of_largest_Swedish_companies) vs [Norway](https://en.wikipedia.org/wiki/List_of_the_largest_companies_of_Norway). From these lists, it does not look like Sweden has larger companies.
Some of the largest Swedish companies besides banks are famous consumer brands like Volvo, H&M, and Ericsson (for those old enough to remember non-smartphones). The companies you mentioned are not that large (IKEA is not even a firm it is an NGO), but they are also famous consumer brands.
Many of the large Norwegian companies besides banks are engineering companies that sell to businesses that the general public probably has never heard of.
The companies you mentioned are software developers. Countries do tend to specialize in some industries due to [positive spillovers](https://en.wikipedia.org/wiki/Spillover_(economics)) and increasing returns to scale. For example, here is a [recent paper](https://www.nber.org/system/files/working_papers/w30147/w30147.pdf) that measures the benefits of having so many tech companies close to each other in Silicon Valley.