Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299954 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17026
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
R&D
innovation
imitation
R&D costs
policy
productivity growth
traveling wave
JEL: 
E61
E65
D22
O31
O47
O52
Document Type: 
Working Paper

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