1999-2004 and measure innovation performance by the (value-adjusted) number of patent applications at the European Patent … firms as well as immobile workers on the innovation performance of their employer. Our main result is that mobile university … scientists contribute substantially more to innovation than R&D workers hired from other firms who, in turn, contribute slightly …

into account firm heterogeneity. We find support for the prediction that competition has a negative effect on innovation … are important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on … innovation. There is partial support for the hypothesis that firms in a more pro-business environment invest more in innovation …