“…3 When Schumpeter wrote about innovation, he clearly intended to emphasize not only the "destructive" aspect of creative destruction, but the "creative" part as well (Aghion and Howitt, 1992;Freeman and Soete 1997;Hassan and Tucci 2010). 4 See Agenor and Neanidis (2015), Howitt (2009), Corrado et al (2012;2013); Dachs andPeters (2014), de Serres et al (2006), Dosi (1988), Fagerberg (1994), Fan (2011), Galindo andMendez-Picazo (2013), Grossman (2009), Grossman andHelpman (1994), Hanley et al (2011), Hsu et al (2015, Hudson and Minea (2013), Huang (2011), Kirchhoff (1994, Laeven et al (2015), Mandel (2009), Navas (2015, OECD (2005bOECD ( , 2007, Petrakis et al (2015), Rogers (1995), Roig-Tierno et al (2015), Sohag et al (2015), Tellis et al (2008), andWennekers (1999). 5 It can be noted that most of the previous works on "innovation-growth nexus" are flooded with production function approach and lacks in Granger causality approach.…”