The search for an appropriate methodology to investigate the relation between R&D investment, knowledge stock and productivity growth is the main purpose of the paper. In analogy with physical assets, we present a model of knowledge capital formation which allows the calculation of the relevant...

Interpreting and using productivity and efficiency measures requires establishing the determinants and implications of observed performance. This is not a simple task, however, given the complex interactions among economic entities in modern markets. Identifying and quantifying performance...