This paper investigates the effect of exogenous entry barriers on productivity growth, using an R&D-based endogenous … growth model. When firms are heterogeneous in their innovation efficiency levels, we found that a reduction in entry costs … for productivity growth. In order to confirm this point in quantitative terms, we estimate the model based on Lentz and …

bias. Furthermore, empirical studies have found that Japan's total factor productivity (TFP) growth has slowed since the …-sized enterprises (SME). Evidence suggests that enhancing R&D among small firms is essential for Japan's economic growth. This paper …