A Neo-Schumpeterian Analysis of the Recent Industrial Development Crisis in Sweden

Abstract

The following paper presents some main results of recent research on post-war industrial development in Sweden. Although some international readers may be interested in the substantial findings as such, the account is given mainly in order to articulate a methodological point. The primary objective is to illustrate advantages of complementing the conventional macro-approach by historical research, partly on the corporate decision making level, utilising a conceptual frame of reference of a Neo-Schumpeterian and ‘Austrian’ type.¹ What more exactly is meant by this will hopefully become clear to the reader from what follows.

Most of the fundamental errors currently committed in economic analysis are due to lack of historical experience more often than to any other shortcoming of the economist’s equipment.

J. Schumpeter

In fact, neither aggregates nor averages do act upon one another.

F. A. Hayek

I am greatly indebted to Rolf Hcnriksson at the Stockholm University who commented on early drafts of this paper and offered valuable criticism and constructive suggestions.