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This paper reports an attempt to explain changes in the industrial pattern of relative international competitiveness and specializ ation in the Swedish manufacturing industry during the period 1969-84 . The author evaluates the role of R&D expenditure in this process. R elative international competitiveness was found to improve in industr ies intensive in human as well as physical capital. The analysis conf irmed the "technology gap" hypothesis in that a high level of R&D e xpenditure, relative to competitors, improved the Swedish market posi tion; on the other hand, no indication was found of increased interna tional specialization on R&D-intensive products in Swedish industry.
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Lars Lundberg (1988) studied this question.
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