Clusters, Cluster Policy, and Swedish Competitiveness

Christian H.M. Ketels

Report | 2009

Clusters, Cluster Policy, and Swedish Competitiveness

by Christian H.M. Ketels

Abstract

Proximity enables firms to take advantage of knowledge spill-overs and exploit supplierdemand linkages with other entities engaged in related activities. Cluster strength thus seems to be one of the important determinants of prosperity differences across geographies. How can cluster-based economic policy help Sweden succeed in global competition? The report "Clusters, Cluster Policy, and Swedish Competitiveness in the Global Economy" approaches this central question through three different steps. First, what can be learnt from the academic research on clusters so far? Second, what conclusions can be drawn from the debate about whether cluster policy is at all useful, and how can it be structured to achieve the best possible impact? Third, what does this mean in terms of implementing a cluster policy for Sweden? The author outlines specific recommendations on how policy should be designed to improve cluster dynamics, how the fundamentals can be changed to make the emergence of strong clusters more likely, and the extent to which cluster processes can be a channel back into overall competitiveness policies at the regional and national level.

Keywords: Policy; Knowledge Use and Leverage; Industry Clusters; Business and Government Relations; Competitive Strategy; Competitive Advantage; Sweden;

Language: English

Format: Print

64 pages

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Citation:

Ketels, Christian H.M. "Clusters, Cluster Policy, and Swedish Competitiveness." Expert Report to Sweden's Globalisation Council, Globalisation Council (Sweden), Stockholm, Sweden, 2009.

The Swedish Competitiveness Scorecard assesses Sweden's current competitiveness across a broad range of indicators, applying an impact logic from competitiveness fundamentals to productivity and prosperity outcomes. On these indicators Sweden is compared to a peer group of other advanced EU and OECD countries. The Scorecard finds Sweden's competitiveness to be solid overall, supporting the current state of the country's prosperity. Issues are identified in the education and skill system, labor market incentives and flexibility, the ability to translate R&D outcomes into economic value creation, and in preparing the economy for the new realities of globalization. Maybe most worryingly, it finds that Swedish public policy, long a strength of the country, is increasingly failing to provide stable policy decisions addressing the issues Sweden is facing.

The literature on the competitiveness of locations has traditionally focused on countries. Over the last decade, however, subnational regions have gained increasing attention both as a level of analysis and as a level for policy making. This chapter aims to explore what this new context implies for the role of regional governments. It is motivated by a concern that regional policy is facing an “implementation gap.” There is much thinking on the importance of regions and the policies that should be designed towards them. But there is comparatively little work on what regional governments’ role should be in implementing these policies relative to that of other levels of government as well as what implications this has on the capabilities they need.

Faculty & Research

Clusters, Cluster Policy, and Swedish Competitiveness

Abstract

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