The development of the industrial economy during the last 100 years is often generally described in
terms of three successive industrial revolutions (Magnusson 1997; Greenwood 1997). The first
industrial revolution occurred in the 19th century and saw the introduction of the factory system and
new machines driven by water, steam and (albeit to a lesser extent) electricity. This revolution came
about at different times in different countries.
Right across the board this resulted in the replacement of working methods and working life in
traditional forms of labour. Through mechanization many jobs were fundamentally changed and new
work was created.
The second industrial revolution came about in the United States at roughly the same time. However,
it only spread to other industrial countries between the wars. It reached its height during the so-called
golden years after World War II and lasted until the middle of the 1960s. It was essentially
characterized by mass production, the aim of which was to lower production costs and realize
economies of scale (Chandler 1990). The second industrial revolution was built upon the development
of a mass market for relatively homogenous articles for consumption. New ways to organize work
were introduced. Concurrently with the increasing mechanization, industrial work became ever-more
routine and was directed from above by engineers and other specialists. During the period between the
wars there was a breakthrough in what has been called scientific management or Taylorism – or, to use
an even broader term, the rationalization movement (De Geer 1978).
During the second industrial revolution the industrial mode of production reached its peak. In most
industrialized countries the industrial sector’s share of GNP – as well as the share of the total work
force employed in industry – reached uniquely high figures of around 40%. The golden era of the
second industrial revolution during the 1950s and early 1960s was also characterized by a uniquely
high rate of economic growth in most countries, not least Sweden (Magnusson 1996).
In the 1970s the golden years were replaced by a crisis which in the short term shook the foundations
of the second industrial revolution. In the United States and Western Europe traditional industry was
rapidly slimmed down. In the immediate term, external macro-economic shocks arising in the
aftermath of oil crises and the American war efforts in Vietnam seemed to be the principal causes of
this industrial crisis. But more long term changes doubtless played a major role, too.
Firstly, there was the issue of the increased globalization of the world economy and industrial growth
in many areas outside the "old" industrial core. A marked expansion of world trade and financial