The purpose of this study is to identify key institutional determinants of firm emergence and growth. We do this using various types of data from Sweden. A characterization of a number of institutions and policy measures shows that they are likely to have contributed to an environment that...

Empirical evidence strongly suggests that R&D increases a firm's “absorptive capacity” (its ability to absorb spillovers from other firms) as well as contributing directly to profitability. We explore the theoretical implications of this. We specify a general model of the absorptive capacity...

In this paper we consider the case for subsidies towards firms which generate R&D spillovers in open economies. We show that in the presence of strategic behaviour by firms many expected results are overturned. Local R&D spillovers to other domestic firms may justify an R&D tax rather than a...

Traditional economic wisdom claims that - while global economic integration is beneficial for economic performance - a country's trade specialization pattern has no impact on its economic performance. In this paper, we seek to cast doubt on this aspect of mainstream economics using a very...

The "changing architecture" of European big business is significant in that it challenges traditional forms of industrial collective action in Europe. The creation of European-level big business organisations has allowed large companies to bypass long-established European as well as national...

This paper challenges the idea that the US economy has corresponded to a laissez-faire model. Broadly speaking, this lack of fit between the model and empirical reality results from ideology and culture. Liberalism has been and is a cornerstone of American identity. But the discursive practice...

This paper considers whether US and European trade and industrial policies are in a process of ‘convergence’ around common policy type. Convergence is once again appearing in politics journals after a period of relative neglect. Convergence--the process by which economic activity in states...

The "changing architecture" of European big business is significant in that it challenges traditional forms of industrial collective action in Europe. The creation of European-level big business organisations has allowed large companies to bypass long-established European as well as national...

[From the Introduction]. In light of these challenges that face EU policy makers, this paper attempts to address two fundamental questions: What is innovation? And what kind of policy is best suited for the job − one anchored in competition policy or industrial policy? Evaluation of the EU’s...