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Economic Analysis of Innovation & Technology in Sweden: Relevance of Swedish Paradox in 2025
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics. (Industrial Economics and Management)
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics. (Industrial Economics and Management)
2025 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This research investigates the Swedish Paradox in 2025, analyzing key factors of innovation and the imbalance between Sweden’s high innovation input and modest economic output. Despite being ranked among the top three most innovative countries for a decade, Sweden struggles with commercialization, as evidenced by historical trends and contemporary data between 2013 - 2022. Using quantitative and qualitative analysis, the research reveals that while R&D, STEM graduates, and Intellectual Property are significantly associated with the Global Innovation Index, GDP growth remains modest, confirming the continuance of the paradox. The survey findings identify a strong educational system and government policies as key innovation drivers but the subsequent economic rewards that are expected are constrained, majorly due to human capital constraints and an aversion to strong entrepreneurial culture. AI’s potential to enhance Sweden’s R&D value is promising, with opportunities in accelerated innovation cycles, although ethical concerns and skill gaps pose significant challenges. The research recommends sustaining educational strengths, streamlining policies, enhancing R&D commercialization, and fostering entrepreneurship to mitigate the paradox.

Abstract [sv]

Denna forskning undersöker den svenska paradoxen 2025, och analyserar nyckelfaktorer för innovation och obalansen mellan Sveriges höga innovationsinsats och blygsamma ekonomiska tillväxt. Trots att de rankats bland de tre mest innovativa länderna under ett decennium, Sverige kämpar med kommersialisering, vilket framgår av historiska trender och förakt porära data mellan 2013 - 2022. Med hjälp av kvantitativ och kvalitativ analys, forskningen avslöjar att medan FoU, STEM-utexaminerade och IP-betalningar är positivt korrelerade med Global Innovation Index är BNP-tillväxten fortfarande blygsam, vilket bekräftar fortsättningen av paradoxen. Resultaten från undersökningen identifierar ett starkt utbildningssystem och en stark regering politik som viktiga innovations drivkrafter men de efterföljande ekonomiska belöningarna som förväntas i själva verket hindras, främst på grund av begränsningar av mänskligt kapital och en motvilja mot stark entreprenörskultur. AI’s potential att öka Sveriges FoU-värde är lovande, med möjligheter i accelererade innovationscykler, även om etiska problem och kompetensluckor utgöra betydande utmaningar. Forskningen rekommenderar att upprötthålla pedagogiska styrkor, effektivisera politiken, förbättra FoU-kommersialiseringen och främja entreprenörskap för att mildra paradoxen.

Place, publisher, year, edition, pages
2025. , p. 54
Keywords [en]
Economics of Innovation, Economics of Growth, Swedish Paradox, Sweden Global Innovation Index
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:bth-28232OAI: oai:DiVA.org:bth-28232DiVA, id: diva2:1978675
Subject / course
IY2656 Master's Thesis MBA 15.0 hp
Educational program
IYAMP MBA programme, 60 hp
Presentation
2025-05-30, 21:08 (English)
Supervisors
Examiners
Available from: 2025-06-30 Created: 2025-06-27 Last updated: 2025-09-30Bibliographically approved

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Economic Analysis of Innovation and Technology in Sweden(4305 kB)398 downloads
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