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Innovation in Firms

A Microeconomic Perspective

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Innovation has become a key factor for economic growth, but how does the process take place at the level of individual firms? This book presents the main results of the OECD Innovation Microdata Project -- the first large-scale effort to exploit firm-level data from innovation surveys across 20 countries in an internationally harmonised way, with a view to addressing common analytical questions. Through the use of common indicators and econometric modeling, this analytical report presents a broad overview of how firms innovate in different countries, highlights some of the limitations of current innovation surveys, and identifies directions for future research.

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Introduction

As the importance of innovation as a driver of economic and social change grows, its nature, role and determinants are receiving increasing attention. Innovation is a broad concept which encompasses a wide range of activities and processes: markets, entrepreneurship, networks and competition, but also skills and organisations, creativity and knowledge transfers. Statistics covering various science and technology activities have been systematically collected by statisticians and researchers for more than 40 years, but only recently has the broader concept of innovation been formalised in a way that makes it possible to gather information about how firms innovate through large-scale statistical surveys.

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