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Advantage Sweden explores the evolution of competitive firms, industries, and clusters of industries in the Swedish economy. It provides a new perspective on how and why Swedish firms have built world-leading positions in certain industries and industry clusters. The diamond model outlining a system of four fundamental determinants underlying international competitive advantage, is applied to Swedish firms and industries. The book shows how pressures and challenges in the home environment, rather than a static environment without competition and stringent demands, are the key to a long-run competitive advantage.