This paper examines how productivity effects of human capital and innovation vary at different points of the …-technology manufacturing, average innovation performance is higher in all industries in Germany and the innovation performance distributions … investing in product innovation in the majority of industries. Frontier firms enjoy the highest returns to product innovation …

), allows for causal interpretation of the relationship between innovation output and labor productivity. We find that knowledge … intensive services benefit from innovation activities in the sense that these activities causally increase their labor …