Who Innovates Out of the Crisis?

The recent economic crisis has severely reduced the short-term willingness of firms to invest in innovation. But this reduction has not occurred uniformly. A few firms are swimming against the stream by increasing investment during the crisis. This has led to a greater concentration of innovative activities among firms already highly innovative before the crisis. Yet, there remains hope for dynamic entrepreneurs, as we see a small group of fast growing, new firms that also increase innovation investment during the crisis.