Specific Patterns of Innovation in German Craft Trades
While many papers point out a size-specific pattern of innovation activities, heterogeneity within SMEs is almost unconsidered. The paper asks for particularities of craft firms with respect to innovation efforts and its effects on firm growth. We use unique survey data with 524 respondents and apply econometric analysis tool to test an particularities empirically. The potential that sales with new products crowd out sales with old products is significantly higher for large craft than for large industrial firms. In contrast to that, small firms show a very similar innovation pattern compared to industrial firms.
Engel, D., M. Rothgang and L. Trettin (2009), Specific Patterns of Innovation in German Craft Trades. Baltic Management Review, 4, 1, 7-21