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.

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Market competition is central to innovative activity, the diffusion process and macro-economic productivity growth. Productivity growth at all levels comes about through institutional reconfiguration in response to the ongoing market process. Stable and sustained long-term growth in output...

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