In this paper, we explore the relationship between innovation activity, productivity, and exports, using a panel of Spanish manufacturing firms for 1990-1998. Our results - based on non-parametric tests - suggest that firm innovation status is critical in explaining the positive...

While innovation is argued to create value, private incentives of fi rms to innovate are driven by what part of the value created rms can appropriate. In this paper we explore the relation between innovation and the markups a fi rm is able to extract after innovating. We estimate fi rm-speci c...

Exporting firms are typically the more productive firms in an economy. Based on this observation, policy makers typically enact policies to stimulate exportation by domestic firms. In this chapter, we argue that firms make productivity enhancing investments and as a result the more productive...