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 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
Original language | English |
---|---|
Pages (from-to) | 279-291 |
Number of pages | 13 |
Journal | Technological Forecasting and Social Change |
Volume | 138 |
DOIs | |
Publication status | Published - Jan 2019 |
JEL classifications
- o32 - Management of Technological Innovation and R&D
- o47 - "Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence"
Keywords
- Economic crisis
- EU
- Productivity
- R&D
- US
- Europium
- Technological forecasting
- Uranium
- High tech
- Productivity gain
- Technological change
- economic development
- European Union
- financial crisis
- firm ownership
- productivity
- research and development
- Europe
- United States
- INFORMATION TECHNOLOGY
- HIGH-TECH SECTORS
- GROWTH
- DEVELOPMENT EXPENDITURE
- SKILLS
- DEVELOPMENT INVESTMENT
- MANAGEMENT-PRACTICES
- EUROPE
- INNOVATIVE FIRMS
- IMPACT