Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2023-22-12
Number: 23-080/VI
Author-Name: Sabien Dobbelaere
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Michael D. König
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Andrin Spescha
Author-Workplace-Name: ETH Zurich
Author-Name: Martin Wörter
Author-Workplace-Name: ETH Zurich
Title: R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands
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.
Classification-JEL: 
Keywords: R&D, innovation, imitation, R&D costs, policy, productivity growth, traveling wave.
File-URL: https://papers.tinbergen.nl/23080.pdf
File-Format: application/pdf
File-Size: 6.694.055 bytes
Handle: RePEc:tin:wpaper:20230080