We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US...

This study investigates the nonlinear relationship between R&D expenditures, innovation, productivity, high-tech export products. Previous empirical research used linear standard structures to deal with these kinds of specifications, and it has shown that the linearity is frequently conditioned...