The Swedish Paradox arises in Fast-Growing Sectors
AbstractThe aim of this paper is to examine whether the previously observed gap between growth of R&D and economic performance, known as the ‘Swedish paradox’, is a general phenomenon across all sectors of the economy, or only occurs in specific industry segments. The dataset used for the analysis covers nearly the entire Swedish economy 1985-1998, divided into five broad sectors: Fast-growing industries, Slow-growing industries, Industrial outphasers, Fast- growing producer services and Other services. The growth of R&D, value added and research productivity is compared for these sectors and the largest gap between R&D and value added is located to the fast growing sectors of the economy. The Swedish paradox is therefore not necessarily a sign of weakness or deficiency of the innovation system, but rather indicates that long-term growth requires large investments in knowledge-building resources.
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Bibliographic InfoPaper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series CIRCLE Electronic Working Papers with number 2008/7.
Length: 34 pages
Date of creation: 01 Jun 2008
Date of revision:
Swedish paradox; sectors; R&D; research productivity; economic growth.;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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.:
- Dahmen, Erik, 1984. "Schumpeterian dynamics : Some methodological notes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(1), pages 25-34, March.
- Karlsson, Charlie & Johansson, Börje & Stough, Roger, 2008. "Entrepreneurship and Innovation in Functional Regions," Working Paper Series in Economics and Institutions of Innovation 144, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Ejermo, Olof & Kander, Astrid, 2006. "The Swedish Paradox," CIRCLE Electronic Working Papers 2006/1, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
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