to enable innovations, and thus improve productivity. We hypothesize that a knowledge stock of process-oriented R …&D increases total factor productivity growth by leveraging traditional forms of capital and labor, and further enhances the … ability of IT capital to increase productivity. We estimate these relationships using two broad panels of US industries …

particular, an increase in the volatility of idiosyncratic productivity shocks significantly decreases aggregate output without …

for a dynamic interaction in explaining total factor productivity (TFP). Relative to the existing literature, our model …