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This paper explores the determinants of productivity gaps within the European Union in computing, chemicals, basic metals and food manufacturingfour sectors that vary in terms of the intensity of sectoral R&D. Our analysis reveals that the main causes of these productivity gaps are intensity of unembodied or disembodied R&D activity and R&D embodied in purchased equipment and machinery, and their interplay. While disembodied and embodied R&D are both associated positively to closingdoi:10.1111/jcms.13260 fatcat:txevh37iqrcxtaq7cfhnvxor3y