Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different … “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms … with good prospects for innovation. Aggregate productivity growth requires that firms with the best prospects for …

The bulk of innovation subsidies in Finland are allocated to firms in industries where the employment share of … among young firms. At the firm level, an increase in innovation subsidies is typically associated with an inflow of … innovators from high-productivity firms. These findings suggest that innovation subsidies contribute to economic renewal and the …