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 …

literature as the “weak” and the “strong” version of the Porter hypothesis. Our “Green Innovation” model includes three types of … eco investments and non-eco R&D to explain differences in the incidence of innovation. Besides product and process … innovations we recognize eco-innovation as a separate type of innovation output. We explicitly model the potential synergies of …