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Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on their R&D?

  • Ejermo, Olof


    (CIRCLE, Lund University)

  • Bergman, Karin


    (AgriFood Economics Centre, Lund Sweden)

While the distinction between manufacturing and services becomes increasingly blurred to some observers, we find, using a panel of Swedish firms, clear evidence that foreign sales (exports) are more important than domestic sales for stimulating R&D. This is particularly clear for manufacturing and this importance of foreign sales has increased over time, simultaneous to an opening up of the Swedish economy. Even though service industries have seen an increase in both R&D and trade over time, it is thus mainly manufacturing that has benefited from increased possibilities for absorptive capacity. This result suggests a clear dichotomy between manufacturing and services in terms of how they react to trade and how they turn towards the foreign market vs. the domestic market to find stimuli for innovation

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Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series Papers in Innovation Studies with number 2013/22.

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Length: 22 pages
Date of creation: 15 Jun 2013
Date of revision:
Handle: RePEc:hhs:lucirc:2013_022
Contact details of provider: Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Phone: +46 (0) 46 222 74 68
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