Industrial dynamics amid ongoing structural changes

The project team is analyzing the industrial dynamics between anchor firms, anchor institutions and the surrounding economy. The researchers will be reviewing established theories and static empirical results on anchor firms in the light of ongoing structural changes in the Swedish economy.

Sweden’s current position as a leading knowledge- and innovation-driven economy is largely due to the country’s role since the early 1900s as a base for several large, knowledge-intensive and internationally competitive companies. These “anchor firms” have acted as catalysts for the Swedish economy.

The significance of these companies can be measured directly in factors such as exports and R&D investments, and a strengthened labor market for highly skilled workers. They also generate spillover effects that stimulate innovation, entrepreneurship, and productivity growth in the surrounding economy. Similarly, public institutions, particularly universities, have served as anchor institutions, promoting innovation and entrepreneurship via spillover effects.

Rapid technological advancements – particularly in digitization and artificial intelligence – shifting globalization trends, the increased need for a green and sustainable transition, and the impact of urbanization on economic geography, mean the conditions in which anchor firms and the economy as a whole operate are changing. Business models and industry structures are being transformed, supply and value chains are being reshaped, the economy is becoming increasingly service-oriented, and the importance of physical location is evolving.

These ongoing structural changes raise several questions. What does this trend mean for established anchor firms? Will global leaders in emerging industries – primarily digital platform companies – become anchor firms in the same way that manufacturing companies have been? What does this mean for accepted truths about anchor firms and their impact on the economy as a whole? And what will the impact be on the role of universities and other anchor institutions in the Swedish economy?

In addition to these questions, the development of anchor firms and their relationship to the broader economy raises several critical policy issues. What are the implications for Sweden's ability to retain, build and attract leading companies? What factors influence the potential of new and established leading companies to generate spillover effects that benefit the Swedish economy and stimulate innovation and entrepreneurship? What role can universities be expected to play in a shifting economic environment of this kind?

The researchers believe that understanding this development and integrating that understanding into the design of future policies will play a crucial role in strengthening Sweden’s position as an innovation-driven knowledge economy.