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 … the likelihood of having both process and product innovation. Both these kinds of innovation have a positive impact on …

presents some empirical evidence on the e®ects of innovation on employment growth and therefore on ¯rms' productivity with the … innovation. The sources of employment growth during the period are split equally between the net contribution of product … innovation and the net contribution from sales growth of old products. However, the contribution of product innovation is …