This paper analyses differences across sectors in firms’ propensity to innovate and the relative importance of inputs to innovation classifying firms into four broad sectors. The propensity and drivers of four types of innovation (new to firm, new to market, process and organisational) within...

A key concept in the economics of innovation is the 'public good' nature of knowledge. This generates a tension between incentivizing knowledge production by allowing knowledge creators appropriate the economic benefits and encouraging its diffusion to enhance the social return to knowledge...