We examine the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the … innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and … formal internal research while, on the other hand, incremental innovations rely mostly on the adoption of equipment goods …

and process innovations to the value of patent protection. This model and the feature of the data imply the estimation of … incentives to innovate in products but not in processes and, conversely, the value of product innovations only – and not the one … of process innovations – increases the incentives to patent. Second, we find that the distributions of product …