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Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?

På svenska

Author

Summary, in English

While the distinction between manufacturing and services becomes increasingly blurred to some observers, we find, using a panel of Swedish firms, clear evidence that foreign sales (exports) are more important than domestic sales for stimulating R&D. This is particularly clear for manufacturing and this importance of foreign sales has increased over time, simultaneous to an opening up of the Swedish economy. Even though service industries have seen an increase in both R&D and trade over time, it is thus mainly manufacturing that has benefited from increased possibilities for absorptive capacity. This result suggests a clear dichotomy between manufacturing and services in terms of how they react to trade and how they turn towards the foreign market vs. the domestic market to find stimuli for innovation.

Publishing year

2014

Language

English

Pages

367-391

Publication/Series

Journal of Industry, Competition and Trade

Volume

14

Issue

3

Document type

Journal article

Publisher

Springer

Topic

  • Economics

Keywords

  • Research and development
  • Foreign and domestic sales
  • Services Manufacturing

Status

Published

ISBN/ISSN/Other

  • ISSN: 1573-7012