R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands

Sabien Dobbelaere, Michael D. König, Andrin Spescha and Martin Wörter
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Michael D. König: Vrije Universiteit Amsterdam
Andrin Spescha: ETH Zurich
Martin Wörter: ETH Zurich

No 23-080/VI, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: The fraction of R&D active firms decreased in Switzerland but increased in the Netherlands from 2000-2016. This paper examines reasons for this divergence and its impact on productivity growth. Our micro-data reveal R&D concentration among high-productivity firms in Switzerland. Innovation support sustains firms’ R&D activities in both countries. Our structural growth model identifies the impact of innovation, imitation and R&D costs on firms’ R&D decisions. R&D costs gained importance in Switzerland but not in the Netherlands, explaining the diverging R&D trends. Yet, counterfactual analyses show that policies should prioritize enhancing innovation and imitation success over cost reduction to boost productivity growth.

Keywords: R&D; innovation; imitation; R&D costs; policy; productivity growth; traveling wave. (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ent, nep-ino, nep-ipr, nep-sbm and nep-tid
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https://papers.tinbergen.nl/23080.pdf (application/pdf)

Related works:
Working Paper: R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands (2024)
Working Paper: R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20230080

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