Firms face many obstacles in their pursuit of innovation. However, the mechanisms that enable firms to surmount these challenges and foster innovation are less understood. This study thus investigates whether the better performance of firms with higher human capital is due to their increased...

This paper presents new evidence on trade‐induced automation in manufacturing firms using unique data combining a retrospective survey that we have assembled with register data for 2005‐2010. In particular, we establish a causal effect where firms that have specialized in product types for...