Business environments dominated by information flows and autonomous tasks, typical of knowledge-intensive industries … gains from relatively high levels of trust in knowledge-rich environments are estimated to be sizeable and our estimates …

This paper proposes a framework to account for innovation similar to the usual accounting framework in production … analysis and a measure of innovativity comparable to that of total factor productivity. This innovation accounting framework is … illustrated using micro-aggregated firm data from the first Community Innovation Surveys (CIS1) for seven European countries …