We analyze the link between R&D, innovation, and productivity in MSMEs with a special focus on micro firms with fewer … than 10 employees; usually constituting the majority of firms in industrialized economies. Using the German KfW SME panel … the probability of reporting innovation, with a larger effect size for product than for process innovations. Moreover …

), allows for causal interpretation of the relationship between innovation output and labor productivity. We find that knowledge … intensive services benefit from innovation activities in the sense that these activities causally increase their labor …

automotive parts industry, is negatively related with propensity to patent innovation. Also, unlike expectations, the InnoBiz …

innovation where access to short term loans for working capital seems to be key. …

Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across … and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have … restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. We develop a …

Development. We examine the role of financial constraints in SME growth, with emphasis on business cycles and credit access. We …