Abstract: Understanding knowledge creation in small economies requires consideration to the restructuring across borders undertaken by multinational firms. Examining firmspecific data on Swedish industry, this paper surveys new evidence on the location of R&D at home and abroad and the characteristics of knowledge transfers in different directions. It is further explored how internationalization in external sources of technology and R&D activities relate to human resource management. Country-specific macro-economic conditions in the late 1980s accounted for the absence of positive links between R&D and training, on the one hand, and industrial performance within Sweden on the other.
25 pages, November 1995
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