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Int. J. Learning and Change, Vol. 0, No. 0, 0000
000
The role of excess capacity in reaching and
holding on to success: evidence from Swedish
industrial development
Ari Kokko
European Institute of Japanese Studies,
Stockholm School of Economics, PO Box 6501,
SE-113 83 Stockholm, Sweden
E-mail: Ari.Kokko@hhs.se
Abstract: During the second half of the 19th century, Sweden was transformed
from a poor agricultural economy into an industrial economy with a relatively
high level of technology. This development was spearheaded by raw material
intensive industries: wood products, pulp and paper, and iron ore. Today,
the same industries are still highly competitive and make up a substantial share
of the Swedish industrial sector. This article asks how Sweden was able
to industrialise so rapidly, and how raw material intensive industries have
maintained their competitiveness for over 100 years. We argue that excess
capacity in learning, human capital, and institutions account for part of the
answers to both questions. We also argue that benchmarking – drawing on the
experiences and lessons from competitors and role models – may provide a tool
for deciding what kind of excess capacity may be needed to prepare for various
challenges in economic and industrial development.
Keywords: economic growth; excess capacity; forest industry; institutional
development; learning; Sweden.
Reference to this paper should be made as follows: Kokko, A. (0000) ‘The
role of excess capacity in reaching and holding on to success: evidence from
Swedish industrial development’, Int. J. Learning and Change, Vol. 0, No. 0,
pp.000–000.
Biographical notes: Ari Kokko is Professor at the European Institute of Japanese
Studies in Stockholm, where he works on issues related to development, trade,
and foreign direct investment. In recent years, his work has focused in particular
on economic development in Vietnam. Before joining...