The investigation of the determinants of economic growth plays an important role for our understanding of the sources of cross-country income differences. This paper analyzes the effects of institutions and innovations on country productivity growth. The empirical evidence shows that...

Many writers have claimed that R&D has two 'faces'. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer by improving the ability of firms to learn about advances in the leading edge ('absorptive capacity'). In this paper we document that there has...