The Nordic Countries in International High-Technology Markets: Pharmaceuticals
| Author | Kim Møller |
| DOI | 10.1177/001083678802300203 |
| Published date | 01 March 1988 |
| Date | 01 March 1988 |
The Nordic Countries in International High-Technology
Markets: Pharmaceuticals
KIM MØLLER
Møller, K. The Nordic Countries in International High-Technology Markets:
Pharmaceuticals. Cooperation and Conflict, XXIII, 1988, 85-93.
The aim of this article is to investigate the possible competitive advantages common
to enterprises in more than one of the Nordic countries, and at least to some extent
to explain them from specific societal or economic aspects common to the Nordic
welfare states. Pharmaceutical production and export is chosen as the case study, as
this is one example of an international competitive success common to most of
the Nordic countries. To some extent the source of competitive advantage is the
sophisticated demand for pharmaceuticals, represented by the advanced Nordic health
care systems. The so-called Scandinavian welfare model may in this context be
considered the source of competitive advantage generally, and the Nordic market as
an advanced home market for the development of what are called welfare technologies
and products.
1. INTRODUCTION
Up until 1973/74, the Nordic countries
In the early 1960s the exports of the
were closely tied to each other through
Nordic countries were to a large extent
trade. As Nordic trade with non-Nordic
based on natural resources. In 1961, 84
countries decreased, it was compensated
percent of Norwegian exports were based
through inter-Nordic trade, and in this
on metals, wood/paper and fish; 98 per-
period all the Nordic countries except
cent of Finnish exports were based on
Iceland saw their market shares decline
wood/paper; 99 percent of Icelandic
on the OECD
non-Nordic markets. The
exports were based on fish; 79 percent of
decrease was least marked for Norway
Denmark’s exports were based on agri-
due to the impressive export of oil and
culture ; while 66 percent of Swedish
ships.
exports were based on metals, wood and
After 1973 market shares continued to
paper. Sweden was the only country
decrease, expecially for Swedish industry,
which had a considerable export (25 per-
and a new feature of the development
cent) to non-Nordic countries of more
was that exterior losses were not being
advanced products such as machinery
equalled by interior gains. The current
and transportation equipment (Fagerberg
balances of payments of the Nordic
1986).
countries were suddenly turning into
Inter-Nordic trade was totally different.
larger and larger deficits.
Only some 45 percent comprised &dquo;simple&dquo;
It became harder to market the
commodities based on natural resources.
&dquo;simple&dquo; commodities, but now the more
Main inter-Nordic trade consisted of
advanced commodities could take over.
machinery, transportation equipment,
Exports shifted from the internal Nordic
chemicals and the like.
market to the non-Nordic EC
and EFTA
86
countries, and -
primarily in the cases of
commodity is gained. The purpose of this
Denmark and Sweden - to the US Mar-
undertaking is to suggest elements of an
ket on the one hand and the LDC
markets
overall Nordic strategy for decreased
on the other.
international dependence without having
The net result of these shifts was a
to give up wealth as a consequence.
decrease in market shares within the
Nordic as well as within the non-Nordic
2, PHARMACEUTICALS
markets. Specialization grew among
The
industrialized
countries
in
case selected is
general.
pharmaceutical pro-
duction and
Wealth increased, but
exports. Internationally, this
so did economic
and political
area has
interdependence.
proved to be a success common
to several Nordic countries.
Policy opportunities and alternatives
In Table 1, export specialization from
were
diminished by this economic
the Nordic countries in the
development. The pre-existing inter-
period 1961-
1983 is shown. This has been calculated
dependence shifted from a clear inter-
dependence
as national pharmaceutical export per
among countries economi-
OECD total
cally...
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