product innovation has a much broader de

product innovation has a much broader de?nition than R&D and that we do not restrict the analysis to a narrowly de?ned industry. Product innovation generates new and improved products that potentially shift the demand curve of the ?rms outwards. However, to e?ectively approach existing or new markets with new or improved products, the ?rms will use marketing tools. In this respect, ?rms may indeed use marketing innovation to approach and reach their markets. In sum, marketing innovation is expected to be an important activity for product innovation to generate growth e?ects. The second hypothesis states that innovation is a skill-intensive activity. Although the majority of innovative ?rms also engage in organisational innovation, the researcher also rules out the concern that the estimated e?ect of product and marketing innovation is driven by organisational changes. More precisely, we ?nd that product-marketing innovation as well as organisational innovation play independent roles for productivity growth.