types of innovation resulting in opposing effects on marginal production costs and prices. In general equilibrium, financial …). Consequently, credit tightening leads to firm exit, increased innovation activity among existing suppliers, and welfare losses that …

Innovation enhances other performance indicators of a firm beside productivity. Buyers are ready to pay higher price … for higher quality or more suitable products due to innovation. Product prices, however, reflect the market position of … aggregated measure for quality. Productivity, size and foreign ownership increase, while innovation decreases our quality measure …