The Swedish National Innovation System 1970-2003 - Vinnova

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sector, such as the Swedish iron and steel, non-electrical and motor vehicles industries, are still the most important manufacturing industries in employment terms. Likewise, in terms of employment, public sector services and less knowledge-intensive services still dominate the Swedish service sector, figures 5.3 and 5.4. Unemployment rates and health-related work absence The severe economic crisis in the early 1990s, followed by broad rationalisation processes in the Swedish economy and increasing labour productivity, in both the public and private sectors, generated rapidly increasing unemployment rates in Sweden. From a situation with the lowest unemployment rates in the OECD in the 1980s, Swedish unemployment rates increased to unprecedented levels. This resulted in unemployment rates in Sweden that for most parts of the 1990s were relatively high in international comparison. In the early 2000s, the Swedish situation has improved, although the Swedish unemployment rate is still far from being among the lowest in the OECD, figure 5.5. Even more unexpected for most labour market analysts, researchers and policy makers was the very rapid increase in health-related work absence. From a situation with an apparent trend of continuously improving labour market conditions, health-related work absence, i.e. ill-health, increased between 1995 and 2001 by 115 per cent. The rapidly decreasing rate of slack in different organisations in the Swedish economy probably contributed strongly to these rapidly increasing rates of health-related absence from work. However, the incentive structures in the social security system may also have contributed to this strong trend of increasing health-related work absence, figure 5.6. Together, these two trends are threatening to undermine the long-term labour supply in Sweden. Moreover, they can seriously threaten the sustainability of human resources in the Swedish national innovation system, due to decreasing rates of learning and competence development in the labour force. Further, they may generate increasing problems with social cohesion in the Swedish society. Labour force share of total population One result of these developments has been rapidly increasing levels of withdrawals of human resources from the active labour market, which seriously threatens future growth potential and public budgets. In addition, the decline of the labour force share of total population in Sweden has, by international standards, been high in recent decades, figure 5.7. The future prospects of the Swedish labour force indicate great challenges for Swedish labour market policy. In the coming thirty years, the working-age population in Sweden will increase in absolute numbers, if projected immigrant levels prevail. Otherwise, the total labour force will decrease substantially. Despite a growing labour force, the old-age dependency ratio, i.e. the ratio between the number of people aged 65 years or more in relation to the number of people in the labour force, will start to increase quite rapidly after 2005. 13 The expected rapid rise in the dependency ratio in Sweden will be an important challenge for sustained economic growth. Moreover, if immigrants continue to have a lower labour force participation rate than nativeborn Swedes, long-term economic growth may be even more hampered because of the relatively high future dependency on immigrating labour force for Swedish economic development. 14 5.1 Employment in relation to population 1981–2001 18 THE SWEDISH NATIONAL INNOVATION SYSTEM 1970–2003
5.2 Employment for men and women in relation to population 2002 5.4 Net creation of new jobs in Sweden 1970–2002 5.3 The production structure in Sweden as sector shares of employment 1970–2000 THE SWEDISH NATIONAL INNOVATION SYSTEM 1970–2003 19
Page 1 and 2: V I N NOVA A NA LYSIS VA 2 0 0 4 :1
Page 3 and 4: The present study is part of a larg
Page 5 and 6: 1 Introduction The purpose of this
Page 7 and 8: I. CONCLUDING ANALYSIS THE SWEDISH
Page 9 and 10: Innovation system competitiveness T
Page 11 and 12: 3 Innovation Policy Challenges The
Page 13 and 14: II. INNOVATION SYSTEM COMPETITIVENE
Page 15 and 16: of labour between the large industr
Page 17 and 18: 4.3 Real percentage growth in manuf
Page 19: 5 Job Creation The Swedish national
Page 23 and 24: 6 Innovation Competitiveness The co
Page 25 and 26: 6.1 Multi-factor productivity growt
Page 27 and 28: III. TECHNOLOGY AND SCIENCE PERFORM
Page 29 and 30: 7.1 Number of patents in the USA (U
Page 31 and 32: 8.1 Scientific publications in inte
Page 33 and 34: 9 Business Innovation Activities Th
Page 35 and 36: 9.1 Business R&D investments in rel
Page 37 and 38: special compilations of R&D data fr
Page 39 and 40: 11 Interaction Patterns Since World
Page 41 and 42: Compared to most other industries,
Page 43 and 44: 11.5 Co-operation arrangements on i
Page 45 and 46: 12 R&D Structures The Swedish natio
Page 47 and 48: 13 Human Resources The Swedish nati
Page 49 and 50: 13.1 Percentage of active populatio
Page 51 and 52: VI. FINANCING AND INCENTIVE STRUCTU
Page 53 and 54: Switzerland and Turkey show similar
Page 55 and 56: 15 Seed-financing and Venture Capit
Page 57 and 58: 16 Incentive Structures During the
Page 59 and 60: 16.1 Gross government deficits in r
Page 61 and 62: Notes 1 OECD, Economic Surveys, Swe
Page 63 and 64: Bibliography Andersson, T., Globali
Page 65: Williamson, O., The Economic Instit

The Swedish National Innovation System 1970-2003 - Vinnova

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