"Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across … and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have … restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. The authors …

include measures of innovation outcomes as well as variables related to innovation effort. The main indicator of innovation … outputs is patents. The main variables related to innovation inputs are investment in research and development (R&D) and … of innovation outputs and inputs by looking at the over-time behavior of the relevant series and comparing the …

the region to understand the role of innovation in development"--World Bank web site …