effect on innovation. We develop a simple "trapped factor" model of innovation that is consistent with these empirical …

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 …

In this paper, we put forward the idea of an innovation accounting framework and consider two main indicators based on … it: expected innovation and innovativeness. The framework is the analogue of the standard framework of economic growth … idea using data from the European Community Innovation Surveys (CIS1 and CIS2) and measuring innovation by the share of …

-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms …, which lowers the opportunity cost of innovation, generating an additional trapped factor effect. Starting from a baseline …