attributed to the flows of new knowledge, innovation and investment, as factors which affect both the aggregate supply and the …

Innovation and technological progress are the key determinants of long-run economic growth and welfare. Therefore, an … important question is, how can public policy encourage more innovation? In this chapter, I review some of the empirical findings … from various recent studies on innovation and firm dynamics that can shed light on the design of innovation policy. The …

increase of GDP and an equilibrium of the balance of payment. The model of innovation and investment pulled growth illustrated … greater innovation; this latter is the factor leading to an increase of the propensity to invest by the firms and then the … and innovation and be organized according to the new markets (lead-markets) and productions, which are emerging in …