Innovation and performance in small- and medium-sized enterprises: evidence from Mauritius

This paper studies the relationship between innovation and firm performance in small- and medium-sized firms in Mauritius, given that these firms are important contributors to growth and employment in the economy. Innovation is proxied by the acquisition of technological developments, expenditure on research and development and the introduction of new or significantly improved products. Results obtained indicate that innovation affects the performance of firms in Mauritius even after controlling for factors such as experience of the owner-manager, age of the firm, size of the firm, region in which the firm is located and the sector in which the firm operates.