This paper examines how productivity effects of human capital and innovation vary at different points of the conditional productivity distribution. Our analysis draws upon two large unbalanced panels of 6,634 enterprises in Germany and 14,586 enterprises in the Netherlands over the period...

Innovation is crucial to economic development. Innovation expenditures in Germany's business sector as well as public funding for science and research have been increasing in the past decade. However, the share of businesses with innovations - especially among the small- and medium-sized ones -...