National framework conditions mediate the effect of technological capabilities of firms on their productivity. Although this has been recognized in the literature for a long time, a quantitative test that explicitly considers this hypothesis has been lacking. Using a World Bank datasets of about...

Is innovation important for development? And if so, how? One popular perception of innovation, that one meets in media every day, is that has to do with developing brand new, advanced solutions for sophisticated, well-off customers, through exploitation of the most recent advances in knowledge....

The aim of the paper is to assess heterogeneity of the innovation process. Using exploratory factor analysis on micro data from the third Community Innovation Survey in 13 countries, we identify four factors that that can be interpreted as research, user, external and production ingredients of...