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: 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.

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