TY  - RPRT
        AU  - Dobbelaere, Sabien
AU  - König, Michael D.
AU  - Spescha, Andrin
AU  - Wörter, Martin
        TI  - R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands
        PY  - 2024/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17026
        UR  - https://www.iza.org/publications/dp17026
        AB  - 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.
        KW  - R&D
KW  - innovation
KW  - imitation
KW  - R&D costs
KW  - policy
KW  - productivity growth
KW  - traveling wave
        ER  -