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

Sabien Dobbelaere, Michael Koenig, Andrin Spescha and Martin Woerter

No 18697, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study why the fraction of R&D active firms decreased in Switzerland but increased in the Netherlands between 2000 and 2016, and how this affected productivity growth. Our structural growth model identifies the impact of innovation, imitation and R&D costs on firms’ R&D decisions. In Switzerland, in-house R&D became harder and more costly, unlike in the Netherlands. Counterfactual analyses show that policies should prioritize enhancing innovation and imitation success over reducing R&D costs to boost productivity growth. Finally, using an optimal policy framework, we demonstrate that a small revenue tax can optimally finance R&D subsidies.

JEL-codes: D22 O31 O47 O52 (search for similar items in EconPapers)
Date: 2023-12
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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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