Over the last several decades, most of Europe has experienced low growth characterized by poor firm-level productivity growth, fewer breakthrough innovations, a small number of rapidly growing firms, and continued obstacles to integrated and competitive markets. These problems have gradually been exacerbated through a series of crises.
However, there are a few countries that deviate from that path, and Sweden is one of them. Even though this country is currently struggling with a number of problems related to faltering integration policies, an underperforming judiciary system, and lagging industrial dynamism, the authors argue that there are lessons to be learned from the transformative policy changes instituted there since the mid-1990s.