The paper examines implications of endogenous growth theory on the relationship between firm productivity, innovation … as well as productivity growth by combining infirmation on firm-level innovation (CIS) with accounting data for a large … endogeneity of innovation (Crä¿»on-Duguet- Mairesse - CDM - approach) and idiosyncratic firm characteristics (matching and average …

Using firm-level innovation data for a large sample of Slovenian firms in the period 1996-2002, the paper finds … surprising results that innovation is not benefitting all firms. We find that only manufacturing firms with below average … productivity growth (the lowest four deciles) are likely to experience significant benefits from successful innovation, while …