This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly … individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the … Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and …

We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product …, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and … usage are important drivers of innovation in both manufacturing and services. Doing more R&D has a positive effect on …