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

Ejermo, Olof LU and Bergman, Karin LU (2014) In Journal of Industry, Competition and Trade 14(3). p.367-391
Abstract
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... (More)
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. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Research and development, Foreign and domestic sales , Services Manufacturing
in
Journal of Industry, Competition and Trade
volume
14
issue
3
pages
367 - 391
publisher
Springer
external identifiers
  • scopus:84905436843
ISSN
1573-7012
DOI
10.1007/s10842-013-0165-x
language
English
LU publication?
yes
id
bbd660c1-ba56-4a22-add5-6fa0843b896e (old id 4174642)
date added to LUP
2013-11-25 10:30:25
date last changed
2017-02-26 03:14:57
@article{bbd660c1-ba56-4a22-add5-6fa0843b896e,
  abstract     = {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.},
  author       = {Ejermo, Olof and Bergman, Karin},
  issn         = {1573-7012},
  keyword      = {Research and development,Foreign and domestic sales ,Services Manufacturing},
  language     = {eng},
  number       = {3},
  pages        = {367--391},
  publisher    = {Springer},
  series       = {Journal of Industry, Competition and Trade},
  title        = {Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?},
  url          = {http://dx.doi.org/10.1007/s10842-013-0165-x},
  volume       = {14},
  year         = {2014},
}