InFocus | Sweden
Sweden on a roll
In the late 19th century, railroads and electricity made northern Sweden's enormous natural resources of forests, ore and hydroelectric power accessible as the Swedish industrial revolution took off in earnest.
- Courtesy: www.sweden.se
- Published: 00:00 June 5, 2007
- Modern buildings with the corporate offices of many big companies on Sveavagen in Stockholm city.
- Image Credit: Image Courtesy: www.imagebank.sweden.se
The country is riding high on industrial growth.
In the late 19th century, railroads and electricity made northern Sweden's enormous natural resources of forests, ore and hydroelectric power accessible as the Swedish industrial revolution took off in earnest. On the European continent, industrialisation had begun earlier, and there was insatiable demand for iron ore, timber and paper. At this time, Norrland (the northern three-fifths of Sweden) was a land of pioneers, where industrialists were making money hand over fist.
Clear evidence of this unparalleled period of economic prosperity can be seen in the capital Stockholm and at many other locations in Sweden. Money earned by the "forest barons" of Norrland directly or indirectly built a large proportion of the sumptuous, turn-of-the-century stone façade buildings that dominate central Stockholm even today. During and after both world wars, industry rose to new heights as belligerent nations screamed for more Swedish raw materials and manufactures.
The period around the turn of the 20th century also witnessed establishment of numerous industrial companies that still remains at the core of the Swedish business sector. Most of these companies worked with various forms of processing of domestic raw materials. A striking number of them originated from the numerous ingenious inventions or refinements of inventions, for which Sweden has become famous. By the mid-20th century, this type of manufacturing industry had become a more important element of the export mix than raw material exports.
The traditionally Norrland-based steel and pulp/paper sectors remain highly important to the Swedish economy.
Nation of inventors
Sweden is widely known as a nation of inventors. When the names of all Swedish innovators and their inventions, improvements and discoveries are listed, it often sounds like nationalistic boasting.
Nonetheless, it is remarkable how many ingenious, life-improving machines, gadgets, appliances, systems, medicines, explanations and methods originated in this little Nordic country.
The success of the Swedish business sector has largely depended — and will continue to depend — on its ability to find new methods and new solutions for a new era. Many of its largest exporting companies were also originally built up on the basis of inventions.
Remarkable phenomenon
So remarkable is this phenomenon that there are numerous theories about how it came about. One of the most plausible is that Sweden is a remote, far-flung, thinly populated country with a severe climate, where in the old days it required both inventiveness and very hard work just to survive.
The history of Swedish inventions begins as far back as the 17th century with medical doctor and Renaissance man Olof Rudbeck the Elder (1630-1702), who, among other things, discovered the human lymphatic system. Since those days, inventions have followed more or less continuously.
Among recent Swedish inventors and their inventions are Nils Bohlin's three-point safety belt, Ericsson's digital AXE telephone switchboard stations, Håkan Lans' computer mouse and GP&C systems for satellite navigation, Lars Leksell's surgical Gamma Knife and Astra Zeneca's ulcer medicine Losec.
Brand plus
With only nine million inhabitants, Sweden is an insignificant market in macroeconomic terms. This is the most important reason why Swedish companies have always been extremely dependent on exports. Due to an insufficient domestic customer base, companies have simply had no choice but to look for business outside the country's borders. Early experience of international competition strengthened these companies and, in many cases, gave them a leg up on competitors from other larger markets.
Theoretically, this is one of the main reasons why Sweden has more multinational corporations per capita than almost any other country. Volvo, Saab, Ericsson, Electrolux, ABB, Astra Zeneca, Pharmacia, Atlas Copco and SKF are only a few of these companies, all working in the traditional manufacturing sector.
A more recent phenomenon is service and consumer goods companies that have employed the same principles to build up strong global brands in recent decades. The prime example here is the 'twin' companies IKEA and H&M, both founded in 1947 by classic Swedish entrepreneurs and both based on the concept of making modern design available to broad segments of the population.
Exceptional case
An exceptional case is the global marketing success of Absolut Vodka, a brand belonging to the government-owned Vin & Sprit AB.
By means of a brilliant design and advertising concept, Absolut managed to establish one of the world's strongest international brands in only 20 years.
Swedish inventors and their discoveries
Below is a selection of Swedish inventors and their most important inventions and discoveries through the centuries:
- Anders Celsius (1701-44), the Celsius (or Centigrade) thermometer
- Carl von Linné (1707-78), Systema naturae, a systematic classification of plants, animals and minerals
- Carl Wilhelm Scheele (1742-86), chlorine and other chemical elements
- John Ericsson (1803-89), the maritime screw propeller
- Alfred Nobel (1833-96), dynamite
- Gustaf de Laval (1845-1913), the cream separator
- Lars Magnus Ericsson (1846-1926), development of telephone instruments and switchboards
- Johan Petter Johansson (1853-1943), the adjustable wrench
- Nils Gustav Dalén (1869-1937), gas-powered maritime beacons
- Fredrik Ljungström (1875-1964), the steam turbine
- Sven Wingquist (1876-1953), the roller bearing
- Baltzar von Platen (1898-1984), the refrigerator without moving parts
- Victor Hasselblad (1906-78), the single-lens reflex camera
- Erik Wallenberg (1915-99) and Ruben Rausing (1895-1983), the Tetra Pak beverage packaging systems
- Rune Elmquist (1906-96), the pacemaker.
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