appear to be vast differences in the organizational practices leading to more innovation both between small and large firms …, and between the firms that operate in high- and low-tech industries. While innovation in small firms benefits from the … incentive for innovation among the sampled companies seems to be the ownership of a firm’s stocks by employees and/or managers …

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 …