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Technological change is not only a determinant of growth but is also a pivotal factor in international competition and the modernisation of an economy. In one of the most in-depth and detailed studies of its kind, George Korres analyzes the macroeconomic and the microeconomic factors influencing the economics of innovation and the economic relations between technology, innovation, knowledge and productivity. In particular the book examines both the theoretical framework and the applications for empirical results. The second edition contributes updated figures and estimations for technical change from EU member states and features new subjects, including growth models; productivity models; production function models and non-parametric models. The book captures all the existing contemporary techniques in the theoretical fields, as well as the empirical applications of the models.