The central prediction of the Aghion et al. (2005) model is an inverted U-shaped relation between innovation and competition. The model is built on the assumption of a product market and has not yet been empirically tested on service-sector firms. Using detailed firm-level data, we find the...

The objective of this study is to investigate the sensitivity of the estimated relationship between innovation and firm performance. In doing so, we rely on a knowledge production function approach and carry out comparisons in a number of respects. The sensitivity analysis is based on the...

The availability of new internationally-harmonized innovation survey data collected from OECD countries has created some interesting opportunities for studying the following two key areas: (1) the determinants of innovation behavior at firm level, and (2) innovation as an important factor...