Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not … capture. Therefore, in this paper, we develop a structural model of innovation which incorporates information on innovation … both process and product innovation. Both these kinds of innovation have a positive impact on firm's productivity …

This study investigates the impact of internal and external research and development (R&D) on the innovation … stronger for Indian SMEs. The negative relationship between firm size and innovation output implies that SMEs in both countries …&D has been examined for both countries. The study is unique in comparing Indian and Pakistani SMEs innovation activities …

they matter. We first characterize YICs in the sample of innovation active firms. We show that firms that combine newness … financial constraints, both internal and external, as an important factor hampering their innovation activities, significantly … more so than other innovation active firms. This access to finance problem is an often used motive for government …

entrepreneurial activity. We also examine evidence suggesting that it is young firms, not small ones, where job growth and innovation …