/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 industries), 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 medium and low …

"In aggregate models, costs that penalise changes in investment--investment adjustment costs-- have been introduced to … investment adjustment costs and the traditional capital adjustment costs as special cases. The estimated weight on the former is … close to zero for all the industries. When only the investment adjustment cost structure is considered, the estimates of the …