This paper aims to provide understanding of the relative trade performances and technological competitiveness, with particular emphasis on product quality, innovation and skills. The firm-level case studies support the conclusions arising from the aggregate analysis. Germany spends more on...

Productivity performance in European countries has been a policy concern for some time. This paper shows that productivity can be enhanced by product market policies which, by increasing competition and efficiency, facilitate higher rates of firms' entry and exit (i.e., firm churning). Drawing...