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 …

government provide incentives for innovation in a fiscally sustainable way? We address this question by examining the Ramsey … problem of finding optimal tax and subsidy schemes in a model in which growth is endogenously sustained by risky innovation …. We characterize the shadow value of growth and entry in the innovation sector. We find that a profit tax is required to …