This paper aims to analyze the impact of corruption on firm innovation in Portugal, using data from the World Bank … endogeneity in the corruption variable. Our results show that corruption fosters innovation in Portugal, regardless of the … dependent variable we use to measure innovation. We have also analyzed the effect of corruption on innovation in foreign and …

or overhead costs has increased in prominence. We relate these changes in firms' cost structures to performance measures … and document that markups and gross profit rates increase substantially as the role of variable costs in production …