, innovation and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme … with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors. In our analysis we … reforms on average profitability, and the effects of profitability on innovation and productivity growth. …

imitate by hiring a worker from a firm that has already innovated. We show that if innovation firms can commit to long … contracts, there is too little innovation and too much imitation in equilibrium. Our model is tractable and allows us to analyze … welfare effects of various policies in the limited commitment case. We find that subsidizing innovation and taxing imitation …