Technology Sourcing in Swedish Mnes and Smes: Evidence from Patent Data

Abstract

Using data from Swedish patent applications, this paper examines the pattern of foreign technology sourcing in Swedish multinational and non-multinational firms. The results show that both types of firms are more likely to make references to countries with large patent stocks and to countries that are located close to Sweden. Contacts with foreigners in the form of trade and FDI also seem to facilitate the transfer of foreign technology to Sweden. However, trade contacts seem to be more important for technology sourcing in SMEs than in MNEs. Moreover, the results suggest that outward FDI is a significant channel for the diffusion of foreign technology to MNEs as well as to non-multinational firms, while inward FDI seems to have a negative impact on the probability that the investing country is referenced in Swedish patent documents.

JEL Classification: O3, F1, F23