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.

Castellani, D., Piva, M., Schubert, T., Vivarelli, M., R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis, <<TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE>>, 2019; 138 (138): 279-291. [doi:10.1016/j.techfore.2018.10.001] [http://hdl.handle.net/10807/134029]

R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis

Piva, Mariacristina;Vivarelli, Marco
2019

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.
2019
Inglese
Castellani, D., Piva, M., Schubert, T., Vivarelli, M., R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis, <<TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE>>, 2019; 138 (138): 279-291. [doi:10.1016/j.techfore.2018.10.001] [http://hdl.handle.net/10807/134029]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/134029
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