To address the relationship between innovation and competition we jointly estimate the opportunity, production, and impact functions of innovation in a simultaneous system. Based on Swiss micro-data, we apply a 3-SLS system estimation. The findings confirm a robust inverted-U relationship, in...

To make intangibles more `tangible' for empirical analysis, statistical cluster techniques are applied in the development of two new taxonomies of manufacturing industries. The first focuses on the distinction between exogenous, location dependent comparative cost advantages, such as the...