This paper deals with the innovation behavior and the R&D activities at the firm level in East Germany. The theoretical … innovation and R&D lack at the firm level. …

of the hypotheses raised in this literature. It employs the data of the first wave of the Mannheim Innovation Panel …&D we also used the concept of total innovation expenditures to capture the importance of non R& D innovation activities … which are especially important for small firms. (3) We give reliable estimates on the occurrence of R&D and innovation …