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Since the mid 1990s productivity performance in Sweden has been very strong compared to many other OECD-countries. Productivity performance in manufacturing has been particularly strong and manufacturing has therefore been viewed as crucial for the economic development in Sweden. Paradoxically, all employment growth since the mid 1990s has been created in services.
This report shows that there has been a structural shift in the Swedish economy since the mid 1990s where investment in intangible assets has become increasingly important for productivity growth. Moreover, intangible investment consisting of knowledge intensive services has increased particularly in manufacturing. Thus, it is not manufacturing alone, but rather the interaction between manufacturing and services that has been crucial for the strong productivity performance in the Swedish economy since 1995.