Empirical studies on aggregate export behaviour have recently emphasised the role played by innovation as the main force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as a variable that affects negatively national export...

One of the key determinants of potential growth are productivity gains. Total factor productivity (TFP) differences are the main determinant of per capita income differences between countries. A key factor to understand TFP is misallocation: the aggregate productivity loss from microeconomic...