IDEAS home Printed from https://ideas.repec.org/p/hhs/lunewp/2011_026.html
   My bibliography  Save this paper

Swedish Business R&D and its Export Dependence

Author

Listed:
  • Bergman, Karin

    () (Department of Economics, Lund University)

  • Ejermo, Olof

    () (CIRCLE)

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 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.

Suggested Citation

  • Bergman, Karin & Ejermo, Olof, 2011. "Swedish Business R&D and its Export Dependence," Working Papers 2011:26, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2011_026
    as

    Download full text from publisher

    File URL: http://project.nek.lu.se/publications/workpap/papers/WP11_26.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Santarelli, Enrico & Piergiovanni, Roberta, 1996. "Analyzing literature-based innovation output indicators: the Italian experience," Research Policy, Elsevier, vol. 25(5), pages 689-711, August.
    2. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
    3. Helmut Fryges & Joachim Wagner, 2016. "Exports and Profitability — First Evidence for German Manufacturing Firms," World Scientific Book Chapters,in: Microeconometrics of International Trade, chapter 7, pages 245-277 World Scientific Publishing Co. Pte. Ltd..
    4. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    5. Olof Ejermo & Astrid Kander, 2011. "Swedish business research productivity," Industrial and Corporate Change, Oxford University Press, vol. 20(4), pages 1081-1118, August.
    6. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, April.
    7. Alexander Vogel & Joachim Wagner, 2016. "Exports and Profitability — First Evidence for German Business Services Enterprises," World Scientific Book Chapters,in: Microeconometrics of International Trade, chapter 8, pages 279-310 World Scientific Publishing Co. Pte. Ltd..
    8. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    9. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    10. Steven Klepper & Franco Malerba, 2010. "Demand, innovation and industrial dynamics: an introduction," Industrial and Corporate Change, Oxford University Press, vol. 19(5), pages 1515-1520, October.
    11. Alla Lileeva & Daniel Trefler, 2007. "Improved Access to Foreign Markets Raises Plant-Level Productivity ... for Some Plants," NBER Working Papers 13297, National Bureau of Economic Research, Inc.
    12. Wallmark, J. Torkel & McQueen, Douglas H., 1991. "One hundred major Swedish technical innovations, from 1945 to 1980," Research Policy, Elsevier, vol. 20(4), pages 325-344, August.
    13. William Gould, 1993. "Quantile regression with bootstrapped standard errors," Stata Technical Bulletin, StataCorp LP, vol. 2(9).
    14. Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002. "Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data," NBER Working Papers 8894, National Bureau of Economic Research, Inc.
    15. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, March.
    16. Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
    17. Martin Andersson & Olof Ejermo, 2008. "Technology Specialization And The Magnitude And Quality Of Exports," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(4), pages 355-375.
    18. Moshe Buchinsky, 2001. "Quantile regression with sample selection: Estimating women's return to education in the U.S," Empirical Economics, Springer, vol. 26(1), pages 87-113.
    19. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
    20. Ejermo, Olof & Kander, Astrid & Svensson Henning, Martin, 2011. "The R&D-growth paradox arises in fast-growing sectors," Research Policy, Elsevier, vol. 40(5), pages 664-672, June.
    21. Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April.
    22. Patrik Gustavsson Tingvall & Patrik Karpaty, 2011. "Service-sector competition, innovation and R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 63-88.
    23. Martin Andersson & Hans Lˆˆf, 2009. "Learning-by-Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.
    24. Henrekson, Magnus & Johansson, Dan, 1999. "Institutional Effects on the Evolution of the Size Distribution of Firms," Small Business Economics, Springer, vol. 12(1), pages 11-23, February.
    25. Ulf Jakobsson & Magnus Henrekson, 2001. "Where Schumpeter was nearly right - the Swedish model and Capitalism, Socialism and Democracy," Journal of Evolutionary Economics, Springer, vol. 11(3), pages 331-358.
    26. Robert Vossen, 1999. "Market Power, Industrial Concentration and Innovative Activity," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(4), pages 367-378, December.
    27. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    28. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September.
    29. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, January.
    30. Granstrand, O & Alange, S, 1995. "The Evolution of Corporate Entrepreneurship in Swedish Industry--Was Schumpeter Wrong?," Journal of Evolutionary Economics, Springer, vol. 5(2), pages 133-156, June.
    31. Fors, Gunnar & Svensson, Roger, 2002. "R&D and foreign sales in Swedish multinationals: a simultaneous relationship?," Research Policy, Elsevier, vol. 31(1), pages 95-107, January.
    32. Pavitt, Keith & Robson, Michael & Townsend, Joe, 1987. "The Size Distribution of Innovating Firms in the UK: 1945-1983," Journal of Industrial Economics, Wiley Blackwell, vol. 35(3), pages 297-316, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    R&D; size; exports; Sweden;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lunewp:2011_026. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Edgerton). General contact details of provider: http://edirc.repec.org/data/delunse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.