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N. Nc and L. , ) -0.066*** (0.015) PATENT -0.278*** (0.040) -0.370*** (0.063) GP -0, ) Sectoral Dummies Yes Yes Country Dummies Yes Yes Lambda Nc 0.817* (0.384) Percent concordant 67, p.67

1. , *. *. 5%, and *. , LNTURN : turnover of the firms, LNEMPHI: higher education-skilled workforce, PATENT: takes the value 1 if the firm uses patent protection and 0 otherwise, GP: dummy variable indicating whether the firm belongs to a group or not, ORGA: dummy variable for organizational structure PUBLIC: public financial supports, LNEXP: exports as in CIS, COOP: firms cooperate in innovation t-ratio are given in parenthesis level of significance, Note: LNRTOT: Total innovation expenditure of the firm