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When firms possess unique R & D assets such as ideas or particular researchers, and there are aggregate increasing returns to scale in R & D, then there can be several Nash equilibria involving different levels of investment in R & D. However when costless communication is possible firms may be...

This paper deals with the physical location of firms although other interpretations are also possible. It is a well-known fact that firms in certain industries tend to cluster. However, since you would expect competition to be more intense when goods are less diversified in a locational sense...

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This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we...

This paper presents recent trends in the foreign activities of Swedish multinationals. The focus is on the distribution of production and R&D between the MNCs' domestic and foreign units, and the pattern of trade within the firms. Issues concerning entry modes and the importance of information...

This paper analyzes the utilization of R&D results in the home and foreign plants of Swedish multinational enterprises (MNEs). The empirical findings indicate that the firms' R&D undertaken in the home country is used as an input in both the home and foreign plants of the MNEs. Around...

This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign markets where the firms operate. However, we also...