observations from Germany and Sweden. Applying a knowledge production function that gives the relationship between innovation input …, innovation output and productivity, we find to a very large extent a common cross-country story for knowledge intensive …Recent studies have documented extensive heterogeneity in firm performance within countries, and innovation has been …

This paper investigates whether failure in innovation at the firm level can account for cross-country heterogeneity in …, differs in a number of ways from much of the previous cross-country comparisons on the relationship between innovation and … productivity using firm-level data. First, a broader definition of innovation input is used in which research and development is …