We analyze the link between R&D, innovation, and productivity in MSMEs with a special focus on micro firms with fewer … the probability of reporting innovation, with a larger effect size for product than for process innovations. Moreover …, micro firms benefit in a comparable way from innovation processes as larger firms, as they are similarly able to increase …

), 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 …