Innovative capacity has a decisive and crucial role in determining who is prospering in the global arena. Innovation is the base for the development of strategic advantages in companies, so necessary in the current context of global competitiveness. Innovative capacity enables countries to...

This paper introduces a new decomposition of euro area headline inflation into core, cyclical, and residual components. Our new core inflation measure, the structural core inflation rate, is the expected headline inflation, conditional to medium to long-term demand and supply-side developments....