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

Author

Listed:
  • Sabien Dobbelaere

    (Vrije Universiteit Amsterdam)

  • Michael D. König

    (Vrije Universiteit Amsterdam)

  • Andrin Spescha

    (ETH Zurich)

  • Martin Wörter

    (ETH Zurich)

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.

Suggested Citation

  • Sabien Dobbelaere & Michael D. König & Andrin Spescha & Martin Wörter, 2023. "R&D Decisions and Productivity Growth: Evidence from Switzerland and the Netherlands," Tinbergen Institute Discussion Papers 23-080/VI, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20230080
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    References listed on IDEAS

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