Analysis: Foreign Owners Boost Swedish Productivity

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A new analysis by the Swedish National Board of Trade reveals that productivity in Swedish companies increases after foreign acquisitions—but the effects vary depending on the origin of the new owners.

The study also highlights factors influencing these outcomes. Geographical proximity, established bilateral relations, and the foreign investors' motives are crucial. Foreign owners often contribute advanced technology, leadership, and access to new markets, enhancing the performance of the acquired companies. In cases where productivity does not improve, the investment may have primarily aimed at market access.

The analysis emphasises the importance of foreign direct investments for Sweden’s economic security and productivity growth. With slow productivity development in the EU and rising geopolitical uncertainty, it is strategically vital to create an environment that attracts and retains international investments.

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