%0 Report
        %A Dobbelaere, Sabien
%A König, Michael D.
%A Spescha, Andrin
%A Wörter, Martin
        %T R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands
        %D 2024
        %8 2024 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 17026
        %U https://www.iza.org/publications/dp17026
        %X 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.
        %K R&D
%K innovation
%K imitation
%K R&D costs
%K policy
%K productivity growth
%K traveling wave