Technology-based entrepreneurship and regional development: the case of Sweden

Purpose - The purpose of this paper is to analyse technology-based entrepreneurship and its importance for economic growth. Firstly, it discusses the concept of technology-based entrepreneurship, and, secondly, it moves on to question if the phenomenon is important for regional growth. New technology-based firms (NTBFs) can influence economic growth both directly, by their own growth, and indirectly, for example, by providing specialised input to other firms. Quite frequently those indirect effects are established within a regional context. Design/methodology/approach - This paper contributes knowledge about the relatively successful Swedish case. Based on several of the author's earlier studies, some empirical data are used to illustrate some characteristics of the Swedish case. The background and origin of Swedish NTBFs, as well as the growth of these firms, are discussed. Since, technology-based entrepreneurship is a strongly regional phenomena special attention will be paid to one of Sweden's major regions; the Gothenburg region. Findings - The paper shows that the number of technology-based new firms corresponds to a small share of general entrepreneurship. Technology-based entrepreneurship is a highly regional phenomenon, where local large firms are important for the training and breeding of future entrepreneurs. Spin-off processes are likely to enhance regional knowledge development and learning processes because it involves the diffusion and sharing of technological and managerial expertise within the region. Practical implications - The results suggests that a country like Sweden, with high R&D spendings and innovative activities, should be encouraged to increase its entrepreneurial activities in order to benefit even further from its R&D and technology development. Originality/value - Is of value by adding to the knowledge on technology-intensive firms - how they tend to grow, how frequent they are and their role in economic growth.