{
  "title": "Firm-Level Innovation in Spain: Patterns, Drivers and Policy Implications",
  "publication": "Selected Issues Papers, June 29, 2026",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/26/firm-level-innovation-in-spain-patterns-drivers-and-policy-implications-577345",
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  "summary": "While Spain’s productivity growth has picked up in recent years, a sizable gap with other high-income countries remains. One contributing factor is a large innovation gap vis-à-vis peer countries.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Spain’s productivity growth has picked up in recent years, but a sizable gap with other high-income countries remains.\n- Spain exhibits a large innovation gap vis-à-vis peer countries.\n- Firm-level evidence shows the innovation gap is particularly pronounced among young firms.\n- The innovation gap widens for higher-quality patents.\n- The R&D tax credit is described as \"generous on paper yet has low take-up rate.\""
    },
    {
      "heading": "Constraints and drivers of innovation",
      "content": "- Size-dependent regulations.\n- Financial constraints.\n- Regulatory burdens.\n- Complexity of the R&D tax credit."
    },
    {
      "heading": "Quantitative simulations and projected impact",
      "content": "- Quantitative simulations based on an endogenous growth model suggest that easing these frictions could raise Spain’s long-term total factor productivity growth by over 0.25 percentage points."
    },
    {
      "heading": "Subject tags and keywords (as presented)",
      "content": "- Subject: Employment, Labor, Production, Productivity, Tax allowances, Taxes, Total factor productivity\n- Keywords: Employment, financial frictions, IMF country, Innovation, Productivity, R&D tax credit, R&D tax credits, size-dependent regulations, take-up rate, Tax allowances, Total factor productivity, total factor productivity growth, vis-à-vis peer\n\nInternational Monetary Fund.\n\n---\n\n Content in this bundle\n\n- Firm-Level Innovation in Spain: Patterns, Drivers, and Policy Implications\n  - Firm-Level Innovation in Spain: Patterns, Drivers, and Policy Implications (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Firm-Level Innovation in Spain: Patterns, Drivers, and Policy Implications (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/26/firm-level-innovation-in-spain-patterns-drivers-and-policy-implications-577345"
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    "[Markdown version](/en/publications/selected-issues-papers/issues/2026/06/26/firm-level-innovation-in-spain-patterns-drivers-and-policy-implications-577345/index.md)",
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    "Authors: Younghun Shim, Isabel Figueiras, Carlo Pizzinelli",
    "Published: June 29, 2026",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229049566.018",
    "Spain’s productivity growth has picked up in recent years, but a sizable gap with other high-income countries remains.",
    "Spain exhibits a large innovation gap vis-à-vis peer countries.",
    "Firm-level evidence shows the innovation gap is particularly pronounced among young firms.",
    "The innovation gap widens for higher-quality patents.",
    "The R&D tax credit is described as \"generous on paper yet has low take-up rate.\"",
    "Size-dependent regulations.",
    "Financial constraints.",
    "Regulatory burdens.",
    "Complexity of the R&D tax credit.",
    "Quantitative simulations based on an endogenous growth model suggest that easing these frictions could raise Spain’s long-term total factor productivity growth by over 0.25 percentage points.",
    "Subject: Employment, Labor, Production, Productivity, Tax allowances, Taxes, Total factor productivity",
    "Keywords: Employment, financial frictions, IMF country, Innovation, Productivity, R&D tax credit, R&D tax credits, size-dependent regulations, take-up rate, Tax allowances, Total factor productivity, total factor productivity growth, vis-à-vis peer",
    "**Firm-Level Innovation in Spain: Patterns, Drivers, and Policy Implications**"
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