The Bioeconomy—A New Life Cycle Phase For Swedish Forestry: Evidence from 50 Years of Significant Innovation Output

Philipp Jonas Kreutzer ()
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Philipp Jonas Kreutzer: Department of Economic History, Lund University, Postal: Department of Economic History, Lund University, Box 7083, S-220 07 Lund, Sweden, https://portal.research.lu.se/sv/persons/philipp-jonas-kreutzer/

No 265, Lund Papers in Economic History from Lund University, Department of Economic History

Abstract: This paper examines forest-based bioeconomy innovation in Sweden between 1970 and 2021 to test central claims about innovation complexity, knowledge requirements, collaboration intensity, and industrial life cycle dynamics. Using a comprehensive database of 4,972 commercialized innovations, I identify 649 forest bioeconomy innovations and analyze their characteristics through logistic regression, count statistics, and qualitative assessment of innovation biographies. The analysis reveals a structural transformation around 1990, marking a shift from component optimization (1970–1989) focused on mechanization to product expansion (1990–2021) emphasizing novel bio-based products. This transition aligns with industry life cycle rejuvenation: established firms maintained dominance, shifting from adopting external innovations to producing them internally. Contrary to prevailing assumptions, bioeconomy innovations were associated with lower developmental complexity and narrower knowledge bases than other innovations. Public funding’s association reversed from positive pre-1990 to negative post-1990. Collaboration intensity showed no association before 1990 but became positively associated with bioeconomy innovation during the product expansion period, providing partial support for the bioeconomy literature’s emphasis on collaborative development. These findings challenge expert consensus about bioeconomy innovation requirements and demonstrate that mature resource industries can undergo competence-enhancing transitions without creative destruction. Results indicate bioeconomy policy effectiveness depends critically on recognizing life cycle stage differences rather than assuming universal innovation characteristics.

Keywords: Industry Life Cycle; Bioeconomy; Forest Industry; Industry; Rejuvenation; Sweden (search for similar items in EconPapers)
JEL-codes: L16 L73 O31 O33 Q23 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2026-03-10
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