Ample evidence from micro data suggests that productivity at establishment level is dominated by idiosyncratic factors. The productivity differences across establishments are very large and persistent even with the narrowest definition of industries. There is an attempt to identify sources of...

This research sheds light on the role of product scope on the innovation activity of multinational multi-product firms. We use patent citation data to break down innovation into two types by measuring the degree to which innovation performed by firms is fundamental and the extent to which the...

A general framework for the study of outsourcing is introduced that incorporates dynamics and heterogeneity among both upstream and downstream producers to mimic an exit approach (Hirschman, 1970) to building vertical relations. The environment is one of search friction and incomplete contracts,...