The Influence Of Nordic Social Welfare System On Innovation

The Nordic region has a long track record of innovation,with Sweden in particular ranking among the world’s top three.With the rise of globalization and the Internet,innovation ability is more and more valued.At the same time,the high social welfare system in Northern Europe has also attracted much attention.Marx’s political economy theory once mentioned that "only in a free state can labor produce more innovation".In the school of institutional innovation economics,North once mentioned that system is the most influential factor on innovation.So,what is the impact of high social welfare system on innovation? What kind of logical mechanism does the system affect innovation? Is the high welfare system more positive or negative for innovation? In China,Nordic countries are the main body of research,especially the Nordic social welfare system.There is less research on innovation,which is worthy of attention.Based on the views of Marxist political economics,the viewpoint of North,the representative in the economics of system innovation,and Schumpeter’s innovation theory,this paper takes the four levels of technological innovation,market innovation,human capital innovation and entrepreneur innovation as the analytical framework,and takes the innovation in northern Europe as the research object to explore the impact of the social welfare system in northern Europe on innovation.This paper will start with the three worlds of welfare capitalism by the Danish economist Costa espin Anderson,review the theoretical basis of the Nordic social welfare system,briefly summarize the content of the Nordic model,and then sort out the main contents of the Nordic social welfare system from four aspects: medical system,unemployment and basic living security,pension system,housing,education and social service security,and will also summarize the main characteristics of Nordic social welfare system.Then this article evaluates the innovation capability of northern Europe from three aspects: the ranking of innovation index,the total number of patent applications and per capita patents,and key advantageous industries.At the same time,it looks at the global scope of the innovation capability of northern Europe from the structure and intensity of import and export trade and the participation of innovative industries in the value chain,then analyzes the impact of social welfare system on each important element of innovation from four aspects: technological innovation,market innovation,human capital innovation and entrepreneur innovation.Finally,it comments on the impact of Nordic social welfare system on innovation from the positive and negative aspects.The study found that the Nordic social welfare policy has a high level and wide coverage,and the per capita patent is much higher than that of great countries such as Britain and the United States.The innovation ability of the Nordic continues to rank at the forefront of the world,and the innovation ability has always been leading in the world,especially Sweden.However,due to the small export volume of high-tech industries,the impact is still small in the world,and mainly in Europe.In terms of the impact of Nordic social welfare system on innovation,at the level of technological innovation,the social welfare system has created a competitive cultural environment and provided strong scientific research funding support.At the level of market innovation,the social welfare system provides it with a stable political and economic environment and attracts international investment.At the level of human capital innovation,the social welfare system has laid the foundation for its health,provided complete educational resources and created a good employment environment.At the level of entrepreneur innovation,the social welfare system reduces labor costs,provides all-round guarantee for small and medium-sized entrepreneurs in terms of capital,tax system and culture,cultivates unique entrepreneurship,and shapes a triple spiral business operation mode.Marx’s political economy once mentioned that when people enter the stage of freedom rather than survival,they can have more innovation.The essence of Nordic social welfare system is people-oriented.Through the perfect social welfare system,it has created a free and open social order for everyone,and constantly balanced the forces of all parties,so as to provide an all-round guarantee for innovation.