Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Swedish Business R&D and its Export Dependence
() and Olof Ejermo
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.
Keywords: R&D; size; exports; Sweden; (follow links to similar papers)
JEL-Codes: O32; (follow links to similar papers)
33 pages, August 23, 2011
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