Adjustment costs determine the dynamics of the response of an industry's output to a shift in demand. Absent any adjustment costs, an increase in demand not accompanied by any change in factor prices raises output, labor, capital, and materials in the same proportion. In the presence of...

Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not capture. Therefore, in this paper, we develop a structural model of innovation which incorporates information on innovation success from firm surveys along with the usual R&D...

This paper uses a newly available dataset on the R&D performance of individual French manufacturing firms for the 1980s to replicate and update a series of studies on French R&D and productivity growth at the firm level during the 1970s. The focus of the paper is on the use of a single dataset...