Global Value Chains play an important role for small open economies like the Nordic Countries. See how, in the Nordic countries, different types of firms including SMEs (dependent and independent), large enterprises, foreign and domestically owned enterprises, and trading and non-trading companies, engage in GVCs and help shape Nordic countries’ roles in GVCs. For the full story, visit: www.oecd.org/std/its/enterprises-in-global-value-chains.htm

1. 1
SMEs
in global value chains
SMEs typically account for a relatively
small share of countries’ exports...
Trade policies are often focused
on improving competitiveness
of exporting firms, which are
usually large enterprises.
Even though 99.8% of enterprises
are Small and Medium sized (SMEs),
these firms account for only one
third of exports. This is a reflection
of the relatively higher costs of
engaging in exports for SMEs as
compared to larger enterprises.
0%
20%
40%
60%
30%
50%
10%
80%
100%
70%
90%
Denmark Finland Norway Sweden
SMEs
% of total direct exports, selected Nordic counties, 2013

2. 0%
20%
40%
60%
80%
100%
Denmark Finland Norway Sweden
direct, own exports of large firms
indirect, supplied by others
indirect, supplied by SMEs
2
One-third of every dollar of GDP
that is created by exports of large
firms reflects the value of goods
and services provided by SMEs that
supply these exporting enterprises.
Therefore, policies that target
improved efficiency in the production
process of these SMEs (that do
not export themselves) can also
help drive export success.
SMEs
in global value chains
…but SMEs do contribute to the export competitiveness of
larger, exporting firms by supplying them with inputs.
Exports of large firms decomposed
into origin of domestic value-added
% 2013 – total economy

3. 3
SMEs
in global value chains
Services form a substantive share of the upstream contribution
of SMEs to the export competitiveness of larger firms.
A large part of the upstream
contribution of SMEs to
exporting enterprises involves
services, including the inputs
supplied to capital-intensive
manufacturing industries.
For example, 22% of the value of
exports by manufacturing firms in
Sweden reflects the value of inputs
produced and supplied by SMEs
active in the services sector.0%
10%
20%
30%
15%
25%
5%
Denmark Finland Norway Sweden
SMEs’ services VA embodied
in manufacturing exports of large firms,
2013

4. SMEs provide
upstream
inputs to
other firms
Direct exports,
54% of total SMEs exports
Border
Indirect
exports via other SMEs,
18% of total SMEs exports
Indirect
exports via large firms,
28% of total SMEs exports
SMEs
Other
SMEs
Large
firms
4
SMEs
in global value chains
As indirect suppliers to other firms, the contribution
of SMEs to overall exports is nearly twice
as high as official figures suggest...
For example, around half (54%) of
SMEs’ exports in value added terms is
exported directly to foreign markets,
but 18% reflects indirect exports
through other SMEs and another 28%
reflects exports via large firms
SMEs’ integration in GVCs,
Nordic countries

5. 5
SMEs
in global value chains
… meaning that SMEs are much more integrated into
GVCs and exposed to foreign markets than can
be observed in traditional trade statistics.
The indirect exposure to foreign
markets is especially important for
independent SMEs (i.e. SMEs that are
not part of a larger enterprise group).
For example, although only 5% of
the total value added by independent
micro-SMEs (SMEs with less than 10
employees) in Sweden is exported
directly, an additional 24% of the
value added they produce is exported
indirectly. This means that growth or
slowdowns in foreign markets may
impact production (and employment) of
these enterprises more than anticipated.
0%
10%
20%
30%
15%
25%
5%
35%
40%
45%
IndependentSMEs
DependentSMEs
Largefirms
IndependentSMEs
DependentSMEs
Largefirms
IndependentSMEs
DependentSMEs
Largefirms
IndependentSMEs
DependentSMEs
Largefirms
Denmark Finland
Three country
weighted
Sweden
Indirect, as a supplierDirect, own exports
SMEs’ integration in GVCs, Nordic countries