@TechReport{iza:izadps:dp17026,
            	author={Dobbelaere, Sabien and König, Michael D. and Spescha, Andrin and Wörter, Martin},
            	title={R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands},
            	year={2024},
	month={May},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17026},
            	url={https://www.iza.org/publications/dp17026},
	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},
            }