R&D and Foreign Sales in Swedish Multinationals: A Simultaneous Relationship?

Research Policy, Vol. 31(1), pp. 95-107, 2002

29 Pages Posted: 15 Jul 2020

See all articles by Gunnar Fors

Gunnar Fors

Research Institute of Industrial Economics (IFN)

Roger Svensson

Research Institute of Industrial Economics (IFN)

Date Written: October 2000

Abstract

This paper analyzes the simultaneous relationship between R&D and foreign sales in Swedish multinational enterprises (MNEs). We argue that this two-way relationship should especially apply to multinationals based in small economies due to the firms’ high dependence on foreign markets. The only previous study addressing this issue used data on multinationals from the United States, a country with a large domestic market, but did not find evidence of the hypothesized simultaneous relationship. Our empirical results suggest a positive two-way relationship between R&D and foreign sales.

Keywords: R&D, Foreign sales, Multinationals

JEL Classification: F23, O32

Suggested Citation

Fors, Gunnar and Svensson, Roger, R&D and Foreign Sales in Swedish Multinationals: A Simultaneous Relationship? (October 2000). Research Policy, Vol. 31(1), pp. 95-107, 2002, Available at SSRN: https://ssrn.com/abstract=3632356

Gunnar Fors

Research Institute of Industrial Economics (IFN)

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Sweden

Roger Svensson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

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Stockholm, SE-102 15
Sweden
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