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 …

innovation market. If employment protection is introduced, firms’ willingness to pay for product or process innovations increases …. This shifts economic activity towards firms specializing in process and product innovation and triggers entry of new start …