Stockholm Capital Region Operates from Position of Global Strength

A new report from the Global Cities Initiative, a joint project of the Brookings Institution and JPMorgan Chase, and the Stockholm Chamber of Commerce shows that the Stockholm Capital Region’s economy is highly competitive relative to eight other advanced regions in Europe and the United States. The new research, issued at an event hosted by the Stockholm Chamber of Commerce on Monday, highlights that Stockholm has enjoyed robust and broadly shared growth over the past decade, drawing on its productive workforce, innovative firms, modern infrastructure, and sound governance. Yet, as globalization, technological change, and demographic forces reset the international landscape, Stockholm’s leadership must continue its commitment to regional competitiveness to maintain this position.

“Stockholm is an engine for economic development for the whole of Sweden and highly competitive from a global perspective,” says Maria Rankka, CEO of the Stockholm Chamber of Commerce. “However the region faces significant challenges that place new demands on our ability to understand and think creatively about ways to promote growth and jobs.”

“The Stockholm Capital Region operates from a position of global strength,” noted Joseph Parilla, senior research associate, Brookings Institution Metropolitan Policy Program and co-author of the report. “To better its future, the region can bring more firms into the export pipeline, expand its innovation ecosystem to include more small and mid-sized companies, educate and integrate immigrants into the workforce, and address the dysfunctional housing market.”

Bo Zethraeus, J.P. Morgan head of investment banking in Sweden added ““J.P. Morgan has a long history in the Nordic region and we are pleased to support this research which highlights the significant potential for Stockholm to build on its reputation for innovation and growth. We will continue to partner with our clients and support opportunities in the market.”

Key findings from the report include:

• Average living standards in the Stockholm Capital Region, as measured by GDP per person, has grown faster than in all but one of its peer metropolitan economies.
• The tradable sector, anchored by its advantages in technology-intensive industries, is an important growth driver. But small and mid-sized companies could be better engaged in trade. SMEs account for 95 percent of firms and 57 percent of value-added, but 26 percent of exports.
• The Stockholm Capital Region has attracted $3.5 billion in new Greenfield foreign direct investment since 2010, which translated into 7,200 new jobs.
• The workforce is among the most educated in the world, but demographic shifts suggest looming talent shortages and warrant a focus on educating and integrating new immigrants into the labor market.
• Innovation assets are strong. Stockholm is one of the most successful entrepreneurial environments in Europe, receiving $2.5 billion in venture capital investments since 2005. The region’s patenting rate ranked second among global peer cities, but just five companies account for half of the Stockholm Capital Region’s patents. Further steps can be taken to boost the innovative capacity of its smaller firms.
• Global infrastructure connections, including freight and broadband systems are world class. However, international air connectivity still lags some global peer cities and imbalances in housing supply and demand limit labor market mobility.
• Policy and regulatory environment is quite conducive to business success.

The November 16^th, 2015 event, hosted by the Stockholm Chamber of Commerce and the Global Cities Initiative, will convene a discussion on the evolving role of cities in the global economy, with implications for national public policy and local action. It will also include lessons on innovative practices being advanced in GCI’s growing network of international regions, a network in which Stockholm has been invited to participate.

Key speakers include Ms. Maria Rankka, chief executive, Stockholm Chamber of Commerce; Mr. Bo Zethraeus, managing director and head of investment banking for Sweden, J.P. Morgan; and Mr. Bruce Katz, vice president and director, Brookings Metropolitan Policy Program. The event will also feature a panel discussion on “How to Build a Globally Competitive Capital Region.” 

The Stockholm Chamber of Commerce is since 1902 the leading business organization for companies in the Stockholm Capital Region. Our operations spans over the regional, national and international level. We are engaged in everything that can improve conditions for the region’s companies; Free trade and housing shortages, infrastructure and labour shortages. We are a popoular meeting point for our 2 000 member companies that have over half a million employees. The Chamber is also a trusted third party which holds one of the world’s leading arbitration institute, the Arbitration Institute of the Stockholms Chamber of Commerce, SCC. For further information visit www.chamber.se.

The Brookings Institution is a private non-profit organization. Its mission is to conduct high-quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. Support for the Global Cities Initiative was generously provided by JPMorgan Chase. Brookings recognizes that the value it provides is in its absolute commitment to quality, independence and impact, and makes all final determinations of the scholarly activities in the Global Cities Initiative, including the research agenda and products.

Launched in 2012, the Global Cities Initiative is a joint project of Brookings and JPMorgan Chase aimed at helping city and metropolitan leaders become more globally fluent by providing an in-depth and data-driven look at their regional standing on crucial global economic measures, highlighting best policy and practice innovations from around the world, and creating an international network of leaders who ultimately trade and grow together. The Initiative is chaired by Richard M. Daley, the former mayor of Chicago, and directed by Bruce Katz and Amy Liu, co-directors of the Brookings Metropolitan Policy Program. For more information please visit www.brookings.edu/projects/global-cities.aspx or www.jpmorganchase.com/globalcities.