If innovation is necessary to tackle the huge economic, political, and social challenges facing society, then entrepreneurship is needed to drive innovation. Both Germany and the US are not only among the most innovative, but also among the most entrepreneurially active countries in the world....

This paper examines the link between liquidity constraints and investment behavior for German firms of different sizes from 1970 to 1986. Results indicate that medium sized firms appear to be more liquidity constrained in their investment behavior than either the smallest or largest firms in the...

The neoclassical model of the production function, as applied by Robert Solow to build the neoclassical model of growth, linked labor and capital to output. More recently, Romer and others have expanded the model to include measures of knowledge capital. In this paper we introduce a new factor,...