Are the large measured returns to on-the-job computer-use productivity gains or the result of unobserved heterogeneity unrelated to productivity? We examine this issue with two large cross-sectional surveys from Germany.

Since the mid 1900’s, economist have come to recognize the role of innovative activity in firms productivity growth, particularly in the competitive market economies. However, the most conducive market environment for innovative activity has also become a subject of interest. Thus, a major...