Radical innovations require risk-taking. However, it is hard to find an objective measure for innovation investments … that would take riskiness into account. In this paper, we investigate how a simple measure of firms’ innovation investments …. We then build a simple model where firms’ innovation activities and firm risk are interrelated. We use the model to …

The bulk of innovation subsidies in Finland are allocated to firms in industries where the employment share of … among young firms. At the firm level, an increase in innovation subsidies is typically associated with an inflow of … innovators from high-productivity firms. These findings suggest that innovation subsidies contribute to economic renewal and the …

the aim of promoting job creation and regeneration, boosting trade, investment and innovation, and supporting the … trade promotion, and additional support for innovation, increasing their attractiveness to both domestic and international …