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Swedish Business R&D and its Export Dependence

  • Bergman, Karin

    ()

    (Department of Economics, Lund University)

  • Ejermo, Olof

    ()

    (CIRCLE)

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.

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File URL: http://project.nek.lu.se/publications/workpap/papers/WP11_26.pdf
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Paper provided by Lund University, Department of Economics in its series Working Papers with number 2011:26.

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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.
Handle: RePEc:hhs:lunewp:2011_026
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

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