R&D and productivity in the US and the EU : Sectoral specificities and differences in the crisis
(2019) In Technological Forecasting and Social Change 138. p.279-291- Abstract
Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech macro sector), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change, at least in the medium- and low-tech macro sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into... (More)
Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech macro sector), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change, at least in the medium- and low-tech macro sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into productivity. Based on these findings, we make a case for a learning-based and selective R&D funding, which, instead of purely aiming at stimulating higher R&D expenditures, works on improving the firms’ capabilities to transform R&D into productivity gains.
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- author
- Castellani, Davide LU ; Piva, Mariacristina ; Schubert, Torben LU and Vivarelli, Marco
- organization
- publishing date
- 2019
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Economic crisis, EU, Productivity, R&D, US
- in
- Technological Forecasting and Social Change
- volume
- 138
- pages
- 13 pages
- publisher
- Elsevier
- external identifiers
-
- scopus:85055135419
- ISSN
- 0040-1625
- DOI
- 10.1016/j.techfore.2018.10.001
- language
- English
- LU publication?
- yes
- id
- 7ac49844-2586-4070-878b-6e6a44227132
- date added to LUP
- 2018-12-07 14:46:25
- date last changed
- 2024-01-15 08:32:56
@article{7ac49844-2586-4070-878b-6e6a44227132, abstract = {{<p>Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech macro sector), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change, at least in the medium- and low-tech macro sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into productivity. Based on these findings, we make a case for a learning-based and selective R&D funding, which, instead of purely aiming at stimulating higher R&D expenditures, works on improving the firms’ capabilities to transform R&D into productivity gains.</p>}}, author = {{Castellani, Davide and Piva, Mariacristina and Schubert, Torben and Vivarelli, Marco}}, issn = {{0040-1625}}, keywords = {{Economic crisis; EU; Productivity; R&D; US}}, language = {{eng}}, pages = {{279--291}}, publisher = {{Elsevier}}, series = {{Technological Forecasting and Social Change}}, title = {{R&D and productivity in the US and the EU : Sectoral specificities and differences in the crisis}}, url = {{http://dx.doi.org/10.1016/j.techfore.2018.10.001}}, doi = {{10.1016/j.techfore.2018.10.001}}, volume = {{138}}, year = {{2019}}, }