Yes but MNCs lke Volvo and Nokia depend on high skilled brains within their territories, and as they get bigger their skill sets are thinned out and mostly preoccupid by logistics and bureaucracy that they fail to continue the innovating and improvements.<quoted text>
I honestly don't think one can compare a developed economy like Sweden to a developing economy like China. China has its own competitive advantage which is vastly different to Swedish. A good policy maker or management should always try to utilise its competitive advantage to drive growth. For the last 30 years since 1979, I think China has really hit all the right keys on its advantages, while many of the developed nations seem to have run out of ideas.
China has had only one advantage, cheap skill labor force or be it low prductive labor force. Had they hit all the 'right keys' they would be the giant 2nd or 3rd largest economy high with a high living standard and an innovative SME sector.