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The paradox of high R&D input and low innovation output: Sweden

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Author Info
Bitard, Pierre
Edquist, Charles ()
Hommen, Leif ()
Rickne, Annika ()
Abstract

This chapter takes its point of departure in the so-called Swedish paradox, according to which the Swedish NSI is plagued by low pay-off in relation to very high investments in R&D and innovation efforts. Using new data, we show that this paradox is still in operation, i.e. the productivity or efficiency of the Swedish NSI remains low. We also specify the paradox in several respects. By focussing upon nine activities in the NSI, we attempt to explain why and how the paradox operates. The paradox is also related to the moderate growth of labour productivity in Sweden. Further, we show that the paradox is linked to globalization: internationalization of production by Swedish firms has proceeded further than the internationalization of R&D. On the basis of this analysis, we identify strengths and weaknesses of the Swedish NSI – many of which are related to the Swedish paradox. We take account of the history of innovation policy in Sweden and – on the basis of the analysis as a whole -- we identify future policy initiatives that might help to mitigate the Swedish paradox.

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Publisher Info
Paper provided by CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University in its series CIRCLE Electronic Working Paper Series with number 2008-14.

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Date of creation: 2008
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Handle: RePEc:cil:wpaper:160

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Related research
Keywords: Innovation; innovation system; Swedish national system of innovation; Swedish paradox;

Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Rudi Bekkers & Isabelle Liotard, 1999. "European standards for mobile communications: the tense relationship between standards and intellectual property rights," Post-Print hal-00351198_v1, HAL. [Downloadable!]
  2. Carlsson, Bo & Jacobsson, Staffan, 1994. "Technological systems and economic policy: the diffusion of factory automation in Sweden," Research Policy, Elsevier, vol. 23(3), pages 235-248, May. [Downloadable!] (restricted)
  3. Cantwell, John & Iammarino, Simona, 2001. "EU Regions and Multinational Corporations: Change, Stability and Strengthening of Technological Comparative Advantages," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 1007-37, December.
  4. Borras, Susana & Chaminade, Cristina & Edquist, Charles, 2008. "The Challenges of Globalisation: Strategic Choices for Innovation Policy," CIRCLE Electronic Working Paper Series 2008-09, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
  5. Fredriksson, Peter, 1997. " Economic Incentives and the Demand for Higher Education," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(1), pages 129-42, March. [Downloadable!] (restricted)
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