observations from Germany and Sweden. Applying a knowledge production function that gives the relationship between innovation input …, innovation output and productivity, we find to a very large extent a common cross-country story for knowledge intensive …Recent studies have documented extensive heterogeneity in firm performance within countries, and innovation has been …

deepening and innovation for productivity. We employ a model that takes into account that innovation and ICT use may be … technological innovations on a more permanent basis. Moreover, the joint impact of ICT use and permanent technological innovation on … productivity appears to be of the same order of magnitude in the two countries. However, the direct impacts of innovation on multi …