-productivity firms in Switzerland. Innovation support sustains firms' R&D activities in both countries. Our structural growth model … identifies the impact of innovation, imitation and R&D costs on firms' R&D decisions. R&D costs gained importance in Switzerland … prioritize enhancing innovation and imitation success over cost reduction to boost productivity growth. …

innovation. We develop a formal model of an innovation arising from the combination of two existing modules with the objective to … innovation) and the benefits associated with returns to scale. We derive conditions for optimal diversity under different regimes …

effect of recombinant innovation of the two technologies. A mechanism of endogenous competition is described involving a … positive externality of increasing returns to investment which are counterbalanced by recombinant innovation. We determine … innovation. …