Motivated by the recent reversal in labor productivity growth, this paper is analyzing the relationship between R&D expenditures and productivity. Time series data of the German manufacturing industry is used to estimate a variable cost function, with the stock of knowledge being modeled as a...

Innovation plays a crucial role in determining today's economic growth patterns. But whatenables some countries to innovate more than others? This study attempts to answer this questionby analyzing in premiere a panel of sixteen Eastern European transition countries. It provides adetailed...