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

Sabien Dobbelaere, Michael D. König (), Andrin Spescha () and Martin Wörter ()
Additional contact information
Michael D. König: Vrije Universiteit Amsterdam
Andrin Spescha: ETH Zurich
Martin Wörter: ETH Zurich
Authors registered in the RePEc Author Service: Martin Woerter

No 17026, IZA Discussion Papers from Institute of Labor Economics (IZA)

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)
JEL-codes: D22 E61 E65 O31 O47 O52 (search for similar items in EconPapers)
Pages: 94 pages
Date: 2024-05
New Economics Papers: this item is included in nep-cse, nep-eec, nep-eff, nep-ent, nep-ino, nep-sbm and nep-tid
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Related works:
Working Paper: R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands (2023)
Working Paper: R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands (2023)
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