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Swedish Multinational Corporations: Recent Trends in Foreign Activities

Author

Listed:
  • Braunerhjelm, Pontus

    (Research Institute of Industrial Economics (IFN))

  • Ekholm, Karolina

    (Research Institute of Industrial Economics (IFN))

  • Grundberg, Lennart

    (Research Institute of Industrial Economics (IFN))

  • Karpaty, Patrik

    (Research Institute of Industrial Economics (IFN))

Abstract

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 technology in coordinating geographically dispersed production are also highlighted. Despite considerable improvements in the conditions for industrial activities in Sweden, the trend towards increased internationalization of Swedish firms has continued. After a noticeable increase in the share of foreign production located in the former European Community between 1986 and 1990, the recent development suggests a return to a regional distribution of foreign activities similar to the one prevailing in 1986. In the 1990s the increase in foreign production by Swedish MNCs has been concentrated to the NAFTA-countries, Asia and Eastern Europe. Another striking result is the pronounced increase in the share of foreign R&D that has taken place between 1990 and 1994.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 technology in coordinating geographically dispersed production are also highlighted. Despite considerable improvements in the conditions for industrial activities in Sweden, the trend towards increased internationalization of Swedish firms has continued. After a noticeable increase in the share of foreign production located in the former European Community between 1986 and 1990, the recent development suggests a return to a regional distribution of foreign activities similar to the one prevailing in 1986. In the 1990s the increase in foreign production by Swedish MNCs has been concentrated to the NAFTA-countries, Asia and Eastern Europe. Another striking result is the pronounced increase in the share of foreign R&D that has taken place between 1990 and 1994.

Suggested Citation

  • Braunerhjelm, Pontus & Ekholm, Karolina & Grundberg, Lennart & Karpaty, Patrik, 1996. "Swedish Multinational Corporations: Recent Trends in Foreign Activities," Working Paper Series 462, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0462
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    References listed on IDEAS

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    1. James R. Markusen & Anthony J. Venables, 2021. "The theory of endowment, intra-industry and multi-national trade," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 4, pages 69-94, World Scientific Publishing Co. Pte. Ltd..
    2. Fors, Gunnar & Svensson, Roger, 1994. "R&D in Swedish Multinational Corporations," Working Paper Series 406, Research Institute of Industrial Economics.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
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    Cited by:

    1. Birkinshaw, Julian & Holm, Ulf & Thilenius, Peter & Arvidsson, Niklas, 2000. "Consequences of perception gaps in the headquarters-subsidiary relationship," International Business Review, Elsevier, vol. 9(3), pages 321-344, June.
    2. Granstrand, Ove, 1999. "Internationalization of corporate R&D: a study of Japanese and Swedish corporations1," Research Policy, Elsevier, vol. 28(2-3), pages 275-302, March.
    3. Thomas Andersson, 1998. "Internationalization Of Research And Development-Causes And Consequences For A Small Economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(1), pages 71-91.
    4. Hatzius, J., 1997. "Domestic jobs and foreign wages: labour demand in Swedish multinationals," LSE Research Online Documents on Economics 20350, London School of Economics and Political Science, LSE Library.
    5. J Hatzius, 1997. "Domestic Jobs and Foreign Wages: Labour Demand in Swedish Multinationals," CEP Discussion Papers dp0337, Centre for Economic Performance, LSE.
    6. Borsos-Torstila, Julianna, . "The Determinants of Foreign Direct Investment Operations of Finnish MNCs in Transition Economies 1990-1995," ETLA A, The Research Institute of the Finnish Economy, number 28, June.

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    More about this item

    Keywords

    TRANSNATIONAL CORPORATIONS; RESEARCH AND DEVELOPMENT;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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