Publication

This paper investigates the labor productivity impact of innovation. The author proposes two models for explaining productivity and export success in European manufacturing industries and firm size classes. He shows that productivity in several European countries relies on product and process innovation, with the support of the efficiency gains provided by grouped business structures. Conversely, he finds that in Italy the introduction of new machinery linked to innovation appears as the key mechanism supporting domestic productivity. When export success is considered, all analyzed countries have to rely on an innovation-based model of competitiveness.