Theo S. Eicher and Thomas Strobel present an industry-level account of the recent changes in German productivity growth … in 1995 and again in 2000, Germany experienced dual reductions in labor productivity growth. Some European economies … fared better and others even worse than Germany. Since productivity is the ultimate determinant of living standards, the …

productivity growth. The empirical evidence shows that institutions and innovations matter, in particular for human capital … institutional variables become relevant. Under robustness checks innovations indeed have a direct effect on country productivity …