The purpose of this paper is to link the twin horns of the European economic dilemma - unemployment and a loss in international competitiveness - to a lack of innovative activity. In Germany the Innovationskrise (innovation crisis) combines with the Standortkrise (location crisis) and the...

This paper examines the link between liquidity constraints and investment behaviour on the one hand, and firm size on the other for a large sample of German firms over the time period 1968-85. The results indicate that smaller firms tend to have investment functions which are more sensitive to...