framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to … regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations …

. The main contribution of this paper is to model the innovation channel of finance explicitly. The paper focuses … particularly on the interaction term between the measure of own innovation and financial development. As countries approach the … technological frontier, own innovation becomes more important to sustain a high growth rate. An adequate level of financial …