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Swedish Business R&D and its Export Dependence

Author

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  • Bergman, Karin

    () (CIRCLE, Lund University)

  • Ejermo, Olof

    () (CIRCLE, Lund University)

Abstract

Sweden 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 for stimulating R&D as compared to a domestic sales effect. In line with the literature, we find in cross-sections from 1991 to 2001 that R&D rises proportionally to sales. But among manufacturing firms foreign sales is distinctly more strongly 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, that they economize on transport costs and are subject to learning-by-export effects. In general, the results highlight the dependence and the role of openness for stimulating R&D in a small economy, especially among manufacturing firms.

Suggested Citation

  • Bergman, Karin & Ejermo, Olof, 2011. "Swedish Business R&D and its Export Dependence," Papers in Innovation Studies 2011/5, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2011_005
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    References listed on IDEAS

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    Keywords

    R&D; size; exports; Sweden;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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