"Entrepreneurs create growth, but who creates entrepreneurs?" was the title of a seminar that IFN, in cooperation with the publisher Studentlitteratur, arranged on January 19. A renowned panel discussed what needs to be done for more people to become entrepreneurs.
The interaction of favorable tax treatment and inherent advantages has led to near universal use of stock options in American venture capital deals, while this remains less common in Europe. Magnus Henrekson, IFN, and Tino Sanandaji asked the tax consultancy firm PwC to calculate the effective tax rate for a standardized entrepreneurial case in 22 countries, finding that countries with favorable tax treatment have more VC activity. One advantage of this tax policy is that it narrowly targets entrepreneurial startups without requiring broad tax cuts.
Steven Davis, University of Chicago Booth School of Business, visited Sweden and IFN in December. He participated in a public seminar and was interviewed by Pär Ivarsson, Ekonomiekot, Swedish Radio. Davis is co-founder of the Economic Policy Uncertainty Index, which measures economic uncertainty and its impact on production, investment and employment. The interview will be broadcasted in channel P1 tomorrow Saturday, January 9th at 11:40 am.
In 2015, the Research Institute of Industrial Economics, IFN, has produced three podcasts in English. The topics range from GDP to immigration. If you have a quiet moment during the holidays, we suggest that you download and listen to an IFN podcast.
Does policy uncertainty curb economic growth? Yes, said Professor Steven Davis, University of Chicago Booth School of Business, at a seminar organized by IFN in Stockholm on December 16. A Swedish example of uncertainty created by the politicians is the government's announcement that distribution of profits in the service sector will be restricted. Steven Davis pointed to the refugee flows that create uncertainty in European societies. Davis is co-founder of the Economic Policy Uncertainty Index, which measures economic uncertainty…
Joacim Tåg, IFN, participated on Wednesday in a panel discussion hosted by the Swedish Venture Capital Association (SVCA). A report on the impact of ownership on value creation and job creation in Sweden was presented. It shows that 50% of all capital is foreign owned. A panel discussed the report's conclusions in general and equity/ownership in Sweden in particular. The participants agreed that the active owners are an asset to companies, but also for the economy at large.
On December 7, Özge Öner, IFN, participated in a seminar about dynamics of the city and surrounding regions. The seminar was organized by Entrepreneurship Forum. Geoffrey Hewings, professor at the University of Illinois, opened with a presentation of research on the degree of interdependence between the city and its metropolitan area. “It is very large but often unmeasured and therefore under-appreciated,” said Hewings.
A report published by Swedish Entrepreneurship Forum with Henrik Jordahl, IFN, and Karin Edmark, Stockholm University and affiliated to IFN, as co-authors shows that seven out of ten Swedes want to limit the distribution of profits in the service sector. At the same time an equally large majority of Swedes believe that freedom of choice is important. In addition, the report indicates that the profit motive is an important driver for competition and innovation and that public opinion against profits in tax-financed services partly is based on misconceptions about the size of profits. On average, Swedes overestimate the profit margins by more than 400 percent.