The purpose of this paper is to examine how the Solow residual relates to innovation at the firm level. We estimate two kinds of relationships. The first relationship explains innovation output from innovation inputs. The second relationship relates TFP growth to innovation output. We obtain two...

Based on an original research program, this book empirically appraises the dissemination of knowledge relevant to the innovative activities of European industry. Economists, business and management specialists and policy-makers will be interested in this new book.