The remarkable success of Sweden over the past 15 years has come after decades of sluggish growth, during which Sweden managed to lose its substantial lead in per-capita income. This fits to the critique that welfare cost and high taxes reduce growth and endangers competitiveness. Since that...

This paper aims to redefine the term competitiveness to enhance its usefulness for the evaluation of country performance and for policy conclusions. We attempt to establish a definition that is adequate if economic policy strives for a new growth path that is more dynamic, socially inclusive and...