Working Paper Series
Swedish Lessons: How Important are ICT and R&D to Economic Growth?
() and Magnus Henrekson
Abstract: We investigate to what extent ICT and R&D capital is
associated with value added growth in the Swedish business sector. By
estimating output elasticities based on data for 47 different industries
for the period 1993–2012 we show that ICT and R&D capital are significantly
associated with value added for most specifications. We also divide ICT
capital into hardware and software capital. To our knowledge, this
distinction has not been made in any previous study at the industry level.
In this case only the estimated elasticity of software is significantly
different from zero. Finally, we use the growth accounting framework to
compare the contribution from ICT and R&D to value added growth when output
elasticities are based on either income shares or weighted least squares
(WLS) estimates. The contribution of ICT to value added growth increases
from 0.9 to 1.5 percentage points when WLS estimates are used instead of
Keywords: ICT; R&D; Software capital; Hardware capital; Industrial change; Panel data; (follow links to similar papers)
JEL-Codes: O14; O32; O33; O47; (follow links to similar papers)
35 pages, June 8, 2015, Revised February 27, 2017
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- This paper is published as:
Edquist, Harald and Magnus Henrekson, (2017), 'Swedish Lessons: How Important are ICT and R&D to Economic Growth?', Structural Change and Economic Dynamics, Vol. 42, September, pages 1-12
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