This paper evaluates the importance of innovation spending for understanding Canada-U.S. firm size and productivity … productivity, closely in line with the evidence. Differences in innovation costs account for the majority of firm size and … differences. A standard model of heterogenous producers, amended to include a channel for innovation, is calibrated to the U.S. to …

with the size of production units. These distortions lead to sharp reductions in plant productivity and the fraction of … ; skill investments ; productivity differences …

-biased technological change, decreasing progressiveness of taxation and productivity slowdown - we show that the decline in productivity …

ability to absorb external knowledge in explaining innovation productivity for US metropolitan areas. Our measure of … absorptive capacity, derived from a knowledge flow model, has a positive and significant impact on innovation productivity. We …High growth and progressive regions possess a culture that promotes innovation. Innovation depends on a region …