Managing Competences in Entrepreneurial Technology Firms: A Comparative Institutional Analysis of Germany, Sweden and the UK

Recent studies of sectoral specialisation and technological development across market economies have shown how contrasting patterns of technical change can be explained by the different institutional frameworks that have become established in distinct types of economy (see, e.g., Casper, 2000; Casper et al., 1999; Soskice, 1997; 1999). According to the "varieties of capitalism" framework, “liberal market economies” (LMEs) such as the US and the UK excel in developing the necessary competencies to innovate in industries dominated by rapidly emerging technologies. More organised or “coordinated market economies” (CMEs) like Germany, by contrast, have developed institutions that advantage long-term and incremental innovation strategies, but inhibit more radical innovation paths (Hall and Soskice, 2001; compare Nooteboom, 2000; Whitley, 2000; 2002)...