Plant-level innovation is introduced into an heterogeneous plant setting so that productivity dynamics are endogenous …. When policy distortions are positively correlated with plant productivity, I argue that accounting for plant innovation is … important for understanding TFP differences across countries. All plants reduce innovation thereby generating an endogenous …

Recent empirical evidence based on firm level data emphasizes firm heterogeneity in innovation activities and the … quality.Both attributes evolve endogenously through firms’ innovation choices. Growth is driven by innovation and self … sector, the model enables to quantify the different effects of selection, innovation, and imitation as well as product and …

innovation activities. The selection of high-skill managers is more important for innovation activities. As the economy … investments, but little selection. Closer to the world technology frontier, there is a switch to an innovation-based strategy with …

This paper provides new evidence on the relationship between innovation, competition and distance to the technology … product innovations. Secondly, there is evidence that innovation and competition are more positively correlated at low levels … positively correlated with product innovation when a firm is more advanced than its main competitor. In other cases, this …