In this paper, we examine the relation between small and medium-sized (SMEs) capacity to access external capital and innovation in Vietnam. We find that SMEs with a high debt ratio tend to be more innovative. After controlling for several firm characteristics, long-term debt remains...

This paper examines the effect of innovation on performance of Small and Medium-sized Enterprises (SMEs). Using panel data from SMEs in Vietnam, we show that SMEs with innovation tend to perform better than SMEs without innovation. We further show that the positive effect of innovation on firm...