“…Innovation is positively associated with firm growth (Audretsch [1995]) and this result is confirmed by Doms et al [1995], who use the number of advanced technologies employed by the firm as a measure for innovation. 1 Despite the difficulties embodied in a production-function framework [Bronzini and Piselli, 2006], innovation is found to be positively associated with productivity, both at the aggregated level [Bronzini andPiselli, 2006, Geroski, 1989] and at the firm level [Parisi et al, 2006]. A more comprehensive approach is carried on by Crépon et al [1998], who move from some "stylised facts" and build an empirical model that encompasses the whole innovation process: the decision to undertake research activity, the magnitude of such effort, the output of the innovative process and the impact on firm's productivity.…”