Innovation is widely considered one of the most important drivers for firm growth in the contemporary economy. However, the 'elusive' as well as heterogeneous nature of innovation has generated a lively debate among scholars with regards to the best metrics to capture its features and effects....

Since 1980, US corporate valuations have risen relative to assets and operating margins have grown. The possibility of sustained economic rents has raised concerns about economic dynamism and inequality. But rising profits could come from political rents or, instead, from returns to investments...

Can an increasing importance of intangible capital explain increases in markups and profits? I use a heterogeneous firm model to show how intangible capital, characterized by fixed costs and uncertainty, is related to markups and profits at the industry level. The scalability and uncertainty...