Markus Trunschke, Bettina Peters, Dirk Czarnitzki und Christian Rammer (2022), Pandemic Effects: Is the German Innovation System Suffering from Long-COVID?

Discussion and Working Paper
Discussion and Working Paper

Markus Trunschke, Bettina Peters, Dirk Czarnitzki und Christian Rammer (2022), Pandemic Effects: Is the German Innovation System Suffering from Long-COVID?

The COVID-19 pandemic has adversely impacted firms in all economies worldwide. Their innovative behavior in the initial- and subsequent years is crucial to economic recovery. We investigate its impact on firms’ innovation activities by analyzing adversely affected firms’ innovation responses. In our analysis, we focus on a sample of German firms drawn from a representative survey. We show that firms substantially reduce R&D and innovation expenditure in the first and the following two years. Moreover, firms’ pre-pandemic digital capabilities are able to reduce this negative response significantly.

Trunschke, Markus, Bettina Peters, Dirk Czarnitzki and Christian Rammer (2022), Markus Trunschke, Bettina Peters, Dirk Czarnitzki und Christian Rammer (2022), Pandemic Effects: Is the German Innovation System Suffering from Long-COVID?, GROWINPRO Working Paper 19/2022.