This paper investigates the causal relationship between firms' research and development expenditures (R&D) and their investments into fixed capital. The literature provides two contrasting views in this respect. The first view holds that a firm's research activity causes, via the creation of...

The innovation value chain (IVC) divides the innovation process into three separate links or activities: Knowledge gathering, knowledge transformation and knowledge exploitation. Here, we report a comparative panel data analysis of the IVC in Ireland and Switzerland. Both economies are small,...