By exploiting a rich firm level database, this paper presents novel empirical evidence on the impact that the introduction of process and product innovations exerts on productivity, as well as on the role played by R&D and fixed capital investment in enhancing the likelihood of introducing...

This paper estimates the effects of innovations on productivity growth and the productivity elasticity of R&D capital. Firms need to introduce or improve products or production processes over time first to satisfy market needs, second to cope with increased competition from diffusion phenomena....

By exploiting a rich firm level data-base, this paper presents novel empirical evidence on the effect of process and product innovations on productivity, as well as on the role played by R&D and fixed capital investment in enhancing the likelihood of introducing innovations at the firm level....