Growth theory has mainly focused on process innovation, either through an increase in quality of the product or a … reduction on the cost. The main contributions in growth theory that includes product innovation has been done in the Dixit and …. Goods are different in their habit formation parameters. Innovation is not the normal reduction in costs but an increase in …

firms using data derived from the 3rd Community Innovation Survey. When firms are asked whether or not they have introduced … other institutions. If an innovative firm has no formal collaboration arrangements and the innovation has not been done … mainly by the firm, then diffusion of informal knowledge is considered to be the main driver of the innovation. The idea is …

has changed the essential nature of innovation - driven by widespread access to the ability to replicate and improve … - remains the same. Hence a focus on endogenous innovation policy is as relevant today as it was 50 years ago. …