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A broad definition of innovation input is used, in which R&amp;D is one of several sources of innovation. A quantitative innovation output measure is used in the analysis, which is based on a large representative sample of firms, including small firms. An econometric framework based on the knowledge-production function accounting for both selectivity and simultaneity bias is employed. The results from Nordic countries show that, given difficulties in pooling the data, it is important to identify country-specific models to account for country-specific effects and differences in countries' national innovation systems.

The link between firm-level innovation and aggregate productivity growth: a cross-country examination