The objective of the paper is to contribute to the understanding of the knowledge economy in Portugal, presenting data and revealing specific characteristics of the Portuguese business R&D, using a framework of available tools such as international comparisons, technology intensity and sectors of the economy. This study concludes that Portuguese business R&D expenditures reveals strong elements of economic terciarization, and an important presence of foreign direct investment in knowledge intensive industries. Furthermore, the study revealed less significant determinants such as the existence of skill labour in pharmaceutical industries and the role of the state in some sectors (wealth and rail transportation).
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