NEW RESEARCH | Radical innovation in 19th century Sweden – lessons for today’s transition

What did radical innovation and entrepreneurship mean when Sweden industrialized? Using a parish in Jämtland in the 19th century as a starting point, historians at Mid Sweden University have clarified the development – and what we can learn.

Sweden is in the midst of the green transition, which will lead us towards growth that is both economically and environmentally more sustainable. At the same time, digitization continues in all areas and new technologies are being developed at record speed. This is something that continues to fundamentally change societies.

– “Radical innovation means just such major structural changes. And it is driven from below, not because decision-makers introduce a new law or something,” says Anna Stjernström, Mid Sweden University.

Her doctoral thesis is about when Sweden went from an agricultural country to an industrial nation, based on the timber harvesting period in Norrland in the 19th century.

– It was the era of steam and steel, but also the timber harvesting period, which had a fundamental impact on the physical landscape and the structures of society. With the help of court books, the court documents of the old days, I have gained a solid insight into people’s lives and the business that was conducted in Hammerdal parish between 1850 and 1906.

Innovation through new combinations

The study draws on Joseph Schumpeter’s theories of creative destruction and radical innovation. It shows how innovation is not just about technical inventions, but about combining existing resources in new ways. In this case, the use of forests has been transformed through new business models, such as the right to harvest. With it, contracted trees are sold as sawlogs, generating capital that in turn finances further transformation.

– This created dynamism and enabled economic growth in the region.

Societal transformation illustrates the concept of creative destruction, where old structures are replaced by new ones.

– The economy shifted from self-sufficiency to a cash economy. This changed both working life and how society was organized. Forestry and agriculture interacted, and capital from the forest was used to finance the development of agriculture and infrastructure,” says Anna Stjernström.

– Logging roads and transportation were crucial for the efficient exploitation of forests.

The role of entrepreneurship

According to Anna Stjernström, local entrepreneurs played a central role in the transformation of society.

– Despite the perception that forestry companies dominated, the study shows that farmers were often entrepreneurs who contributed to development by trading in forests and building their own businesses. So entrepreneurship can thrive even in rural areas if the right conditions are in place.

The same challenges then and now

The study points out that societal transformations cannot be managed solely from a global level, but must be driven by local initiatives. And to promote entrepreneurship and innovation in today’s green transition, it is important, according to Anna Stjernström, that rural areas are given the right conditions in terms of both capital and infrastructure.

– There is no shortage of good business ideas in rural areas. But when there are no schools, health centers, stable broadband or proper roads, it hampers all forms of entrepreneurship that can contribute to the green transition.

– It’s a bit funny how the county governors’ accounts of Jämtland in the 19th century show how they struggled with the same problems – inadequate roads and capital supply – as we do today,” says Anna Stjernström.

Contact anna.stjernstrom@miun.se

More about the thesis
Anna Stjernström will defend her thesis at the Department of Humanities and Social Sciences, Mid Sweden University, on October 17, 2024 with the thesis Timmeravverkningstiden: Skapande förstörelse i en jämtländsk socken ca 1850-1906.