with production. In the model, technological progress is endogenously driven by R&D investment and is composed of two parts … productivity of physical investment and is embodied in new tangible capital (e.g., structures and equipment). The model breaks the … cases quantitatively well-documented empirical regularities: (i) the positive relation between R&D investment and the …

with production. Technological progress is endogenously driven by research and development (R&D) investment and is composed … of two parts. One part is devoted to product innovation; the other, to increasing the productivity of physical investment …

with production. In the model, technological progress is en- dogenously driven by R&D investment and is composed of two … productivity of physical investment and is embodied in new tangible capital (e.g., structures and equipment). The model breaks the … quantitatively well-documented empirical regularities: (i) the positive relation between R&D investment and the average stock returns …