/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 …

productivity. We examine these claims. Non-parametric plots and regressions show a robust positive association between the … manufacturing sector and Business R&D expenditures (BERD), while the relationship between manufacturing and exports or productivity …