particular emphasis on product quality, innovation and skills. The firm-level case studies support the conclusions arising from … and innovation arising from UK R&D is of a high but, compared to their German counterparts, UK firms often fail to …

-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms …, which lowers the opportunity cost of innovation, generating an additional trapped factor effect. Starting from a baseline …

We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A …