Microeconomic applications of semi-parametric models with an endogenous variable have been largely ignored. Recognizing spatial heterogeneity captured by semi-parametric cost function models can impact economies of scale estimates. We estimate several cost function models, using panel data for...

A new method for constructing R&D capital stocks is proposed. Following Schumpeter, the development of R&D capital stocks is modelled as a process of creative destruction. Newly generated knowledge is assumed not only to add to the existing R&D capital stocks but also, by displacing old...

In this article we investigate - both conceptually and empirically - the relationship between three interconnected elements of the Schumpeterian "engine of progress": the ability of industries' R&D efforts to turn out successful innovations; the ability of innovations to lead to high...