Swedish Business R&D and its Export Dependence
AbstractSweden has seen a rise in business R&D-intensities and dependence on exports to make its economy grow since the early 1990s. This paper examines the role of foreign sales in stimulating R&D as compared to a domestic sales effect, and finds, in line with the literature, that R&D rises proportionally to sales in cross-sections from 1991 to 2001. Among manufacturing firms, foreign sales are distinctly more associated with an increase in R&D than domestic sales. For service firms, domestic sales are as important as foreign. The results are consistent with the hypotheses that manufacturing firms more easily separate production from R&D, economize on transport costs and are subject to learning-by-exporting effects. In general, the results highlight the dependence on openness in stimulating R&D in a small economy, especially among manufacturing firms.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2011:26.
Length: 31 pages
Date of creation: 20 Sep 2011
Date of revision:
Publication status: Forthcoming as Ejermo, Olof and Karin Bergman, 'Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?' in Journal of Industry, Competition and Trade, 2013.
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
R&D; size; exports; Sweden;
Other versions of this item:
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-CSE-2011-10-01 (Economics of Strategic Management)
- NEP-INO-2011-10-01 (Innovation)
- NEP-INT-2011-10-01 (International Trade)
- NEP-SBM-2011-10-01 (Small Business Management)
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