What do we know about the relationship between innovation and productivity among firms? The workhorse model of this … innovation are derived. The recent empirical evidence on the relationship between innovation and productivity in firms is then … surveyed. The conclusion is that there are substantial positive impacts of product innovation on revenue productivity, but that …

to enable innovations, and thus improve productivity. We hypothesize that a knowledge stock of process-oriented R …&D increases total factor productivity growth by leveraging traditional forms of capital and labor, and further enhances the … ability of IT capital to increase productivity. We estimate these relationships using two broad panels of US industries …

This paper studies the interaction between production subsidies and innovation subsidies. We develop a model which … understand how firms react to each type of subsidy. In a three-stage game, the government chooses production and innovation … crowd out innovation, since they reduce the gain for firms from investing in R&D. On the other hand, providing a production …