#466 Sweden 100%/3.7% R&D
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The empirical research provides different ways of analysing the role of knowledge in companies and its impact
on regional growth. The starting point for this report is based on the theory of knowledge that is embodied in
the companies’ production function (drawn from e.g. Schumpeter 1934 and 1942, Arrow 1962, Chambers
1988, Romer 1990, Grossman and Helpman 1991 and Hamermesh 1993). The theory relates to the way
increased human capital (known as R&D work) in the production process results in increased productivity
among the workforce (Lucas 1988), but also to how an increase in R&D capital (through R&D investments)
in production increases the companies’ ability to renew themselves (Romer 1990). In this respect, knowledge
is embodied in the theory in various forms
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