Bruno Crépon and Emmanuel Duguet, "Estimating the Innovation Function from the Patent Numbers: GMM on Count Panel Data", Journal of Applied Econometrics, Vol. 12, No. 3, 1997, pp. 243-264. The data are taken from two sources. The first one is the INSEE-INPI data that gives the number of European patent applications at the firm level in manufacturing over 1980-1989. The second source is the Enquete Recherche over 1974-1988 that provides the firm level research expenditures from which the research and development capital is computed. However, the Institut National de la Statistique et des Etudes Economiques does not allow us to provide the dataset to others. Anyone interested in the data should therefore contact : Institut National de la Statistique et des Etudes Economiques Division Marches et Strategies d'Entreprises Timbre G230 15, boulevard Gabriel Peri F-92245 Malakoff Cedex France Phone : (33) 01.41.47.60.75 Fax : (33) 01.41.17.60.45 Interested researchers should also take knowledge of the French laws regarding the "Secret Statistique". If the requirements are fullfilled, more data would in fact become directly available. The file programs.cd, a DOS file which is zipped in cd-progs.zip, contains the SAS programs used in the paper.