The measurement of innovation is a complex and ambiguous challenge. Two broad families of measures have been used: those focusing on inputs and those focusing on outputs. Each has its strengths and weaknesses, but neither is able to capture the growing importance of product innovation...

This paper examines trends in the unit prices of manufactured imports into the European Union (EU) in the period 1988-2002. This is undertaken at a high level of disaggregation, and it is this decomposition which we believe has important implications both for a range of bodies of economic...