New Technology–based Firms – an exploratory study of technology exploitation and industrial renewal
This paper explores the role of new technology–based firms in the process of industrial renewal of Sweden by analyzing a set of such firms which were established in the period 1965–1974. We find that there has been an extensive trade in the technology base of these firms and a great deal of the transactions were made with foreign partners, in particular for electronics based firms. Those acquired were among the ones with the best growth and technological performance. Whilst the effect of this set of NTBFs on Swedish industry's renewal was positive, it was small in magnitude and probably below its potential. We hypothesize that features of the Swedish industrial environment, in particular, a poorly developed capital market and a historical specialization in mechanical engineering, are responsible for the relatively unimpressive impact of these firms.