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Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, and expansion and innovation activities for up to 40 months after business formation. Using the self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth-oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance.
Depuis les débuts de l’ère spatiale à la seconde moitié du XXème siècle, la France et l’Allemagne ont contribué à l’émergence d’une industrie spatiale européenne dont ils sont les deux principaux acteurs et les principaux partenaires. L’agence spatiale européenne, en s’appuyant sur cette industrie duale, à la fois civile et militaire, a donné une place importante à l’Europe sur la scène mondiale. La création de pôles de compétitivité au tournant du XXIème siècle a contribué à soutenir l’innovation dans un secteur bousculé par l’arrivée de nouveaux acteurs internationaux. Ces pôles se sont imposés dans le paysage économique du secteur en créant des organisations où cohabitent et collaborent des acteurs privés et publics allant de la recherche à la mise en oeuvre des technologies développées. A la multiplicité des politiques de soutien à l’innovation en France et en Allemagne s’ajoutent désormais les objectifs européens définis par la Commission Européenne. Les pôles de compétitivité ne sont pas identifiés comme des instruments privilégiés de la politique spatiale européenne pas plus que dans les projets de coopération franco-allemands des dernières années. La capacité d’action locale de ces organisations n’est pas adaptée aux enjeux économiques à dimension européenne qui prévalent aujourd’hui et ne leur permet pas de s’intégrer efficacement dans l’industrie spatiale moderne.
Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1,405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growth-oriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.
Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1,405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growth-oriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.
This article examines public service resilience during the COVID-19 pandemic and studies the switch to telework due to social distancing measures. We argue that the pandemic and related policies led to increasing demands on public organisations and their employees. Following the job demands-resources model, we argue that resilience only can arise in the presence of resources for buffering these demands. Survey data were collected from 1,189 German public employees, 380 participants were included for analysis. The results suggest that the public service was resilient against the crisis and that the shift to telework was not as demanding as expected.
This article examines public service resilience during the COVID-19 pandemic and studies the switch to telework due to social distancing measures. We argue that the pandemic and related policies led to increasing demands on public organisations and their employees. Following the job demands-resources model, we argue that resilience only can arise in the presence of resources for buffering these demands. Survey data were collected from 1,189 German public employees, 380 participants were included for analysis. The results suggest that the public service was resilient against the crisis and that the shift to telework was not as demanding as expected.
Powered by blockchain
(2020)
Purpose: The purpose of this study is to formulate the most probable future scenario for the use of blockchain technology within the next 5–10 years in the electricity sector based on today’s experts’ views.
Design/methodology/approach: An international, two-stage Delphi study with 20 projections is used.
Findings: According to the experts, blockchain applications will be primarily based on permissioned or consortium blockchains. Blockchain-based applications will integrate Internet of Things devices in the power grid, manage the e-mobility infrastructure, automate billing and direct payment and issue certificates regarding the origin of electricity. Blockchain solutions are expected to play an important big role in fostering peer-to-peer trading in microgrids, further democratizing and decentralizing the energy sector. New regulatory frameworks become necessary.
Research limitations/implications: The Delphi study’s scope is rather broad than narrow and detailed. Further studies should focus on partial scenarios.
Practical implications: Electricity market participants should build blockchain-based competences and collaborate in current pilot projects.
Social implications: Blockchain technology will further decentralize the energy sector and probably reduce transaction costs. Originality/value: Despite the assumed importance of blockchain technology, no coherent foresight study on its use and implications exists yet. This study closes this research gap.
Parts without a whole?
(2015)
This explorative study gives a descriptive overview of what organizations do and experience when they say they practice design thinking. It looks at how the concept has been appropriated in organizations and also describes patterns of design thinking adoption. The authors use a mixed-method research design fed by two sources: questionnaire data and semi-structured personal expert interviews. The study proceeds in six parts: (1) design thinking¹s entry points into organizations; (2) understandings of the descriptor; (3) its fields of application and organizational localization; (4) its perceived impact; (5) reasons for its discontinuation or failure; and (6) attempts to measure its success. In conclusion the report challenges managers to be more conscious of their current design thinking practice. The authors suggest a co-evolution of the concept¹s introduction with innovation capability building and the respective changes in leadership approaches. It is argued that this might help in unfolding design thinking¹s hidden potentials as well as preventing unintended side-effects such as discontented teams or the dwindling authority of managers.
In the context of microfirms, this paper analyzes whether the link between the three aspects involving innovative activities—R&D, innovative output, and productivity—hold for knowledge-intensive services. With especially high start-up rates and the majority of employees in microfirms, knowledge-intensive services (KIS) have a starkly different profile from manufacturing. Results from our structural models indicate that KIS firms benefit from innovation activities through increased labor productivity with highly skilled employees being similarly important compared to R&D for creating innovation output in microfirms. Moreover, the firm size advantage of large firms found for manufacturing almost disappears in KIS, with start-ups and young firms having a higher probability of initiating innovation activities and of successfully turning knowledge into innovation output than mature firms.
Invention
(2023)
This entry addresses invention from five different perspectives: (i) definition of the term, (ii) mechanisms underlying invention processes, (iii) (pre-)history of human inventions, (iv) intellectual property protection vs open innovation, and (v) case studies of great inventors. Regarding the definition, an invention is the outcome of a creative process taking place within a technological milieu, which is recognized as successful in terms of its effectiveness as an original technology. In the process of invention, a technological possibility becomes realized. Inventions are distinct from either discovery or innovation. In human creative processes, seven mechanisms of invention can be observed, yielding characteristic outcomes: (1) basic inventions, (2) invention branches, (3) invention combinations, (4) invention toolkits, (5) invention exaptations, (6) invention values, and (7) game-changing inventions. The development of humanity has been strongly shaped by inventions ever since early stone tools and the conception of agriculture. An “explosion of creativity” has been associated with Homo sapiens, and inventions in all fields of human endeavor have followed suit, engendering an exponential growth of cumulative culture. This culture development emerges essentially through a reuse of previous inventions, their revision, amendment and rededication. In sociocultural terms, humans have increasingly regulated processes of invention and invention-reuse through concepts such as intellectual property, patents, open innovation and licensing methods. Finally, three case studies of great inventors are considered: Edison, Marconi, and Montessori, next to a discussion of human invention processes as collaborative endeavors.
Due to the high concentration of people and infrastructures in European cities, the possible impacts of climate change are particularly high (cities' social, economic and technical vulnerabilities). Adaptation measures to reduce the sensitivity of a city to climate risks are therefore of particular importance. Nevertheless, it is also common to develop compact and dense urban areas to reduce urban sprawl. Urban infill development and sustainable spatial climate policies are thus in apparent conflict with each other. This article examines how German cities deal with the tensions between these two policy fields. Using six case studies, a new heuristic analysis method is applied. This study identifies three key governance aspects that are essential for promoting the joint implementation: instruments, organisation and interaction. Based on our case studies, we conclude that successful implementation can only be achieved through integrative governance including all three domains.
Due to the high concentration of people and infrastructures in European cities, the possible impacts of climate change are particularly high (cities' social, economic and technical vulnerabilities). Adaptation measures to reduce the sensitivity of a city to climate risks are therefore of particular importance. Nevertheless, it is also common to develop compact and dense urban areas to reduce urban sprawl. Urban infill development and sustainable spatial climate policies are thus in apparent conflict with each other. This article examines how German cities deal with the tensions between these two policy fields. Using six case studies, a new heuristic analysis method is applied. This study identifies three key governance aspects that are essential for promoting the joint implementation: instruments, organisation and interaction. Based on our case studies, we conclude that successful implementation can only be achieved through integrative governance including all three domains.
How Will We Dine?
(2020)
Haute cuisine, the cooking style for fine dining at gourmet restaurants, has changed over the last decades and can be expected to evolve in the upcoming years. To engage in foresight, the purpose of this study is to identify a plausible future trend scenario for the haute cuisine sector within the next five to ten years, based on today’s chefs’ views. To achieve this goal, an international, two-stage Delphi study was conducted. The derived scenario suggests that the coronavirus disease 2019 (COVID-19) pandemic will lead to significant restaurant bankruptcies and will raise creativity and innovation among the remaining ones. It is expected that haute cuisine tourism will grow and that menu prices will differ for customer segments. More haute cuisine restaurants will open in Asia and America. Local food will remain a major trend and will be complemented by insect as well as plant-based proteins and sophisticated nonalcoholic food pairings. Restaurant design and the use of scents will become more relevant. Also, private dining and fine dining at home will become more important. The scenario also includes negative projections. These findings can serve as a research agenda for future research in haute cuisine, including the extension of the innovation lens towards the restaurant and the business model. Practical implications include the necessity for haute cuisine restaurants to innovate to cope with increasing competition in several regions. Customers should be seen as co-creators of the value of haute cuisine.
How Will We Dine?
(2020)
Haute cuisine, the cooking style for fine dining at gourmet restaurants, has changed over the last decades and can be expected to evolve in the upcoming years. To engage in foresight, the purpose of this study is to identify a plausible future trend scenario for the haute cuisine sector within the next five to ten years, based on today’s chefs’ views. To achieve this goal, an international, two-stage Delphi study was conducted. The derived scenario suggests that the coronavirus disease 2019 (COVID-19) pandemic will lead to significant restaurant bankruptcies and will raise creativity and innovation among the remaining ones. It is expected that haute cuisine tourism will grow and that menu prices will differ for customer segments. More haute cuisine restaurants will open in Asia and America. Local food will remain a major trend and will be complemented by insect as well as plant-based proteins and sophisticated nonalcoholic food pairings. Restaurant design and the use of scents will become more relevant. Also, private dining and fine dining at home will become more important. The scenario also includes negative projections. These findings can serve as a research agenda for future research in haute cuisine, including the extension of the innovation lens towards the restaurant and the business model. Practical implications include the necessity for haute cuisine restaurants to innovate to cope with increasing competition in several regions. Customers should be seen as co-creators of the value of haute cuisine.
Growing out of the crisis
(2013)
Greece’s currently planned institutional reforms will help to get the country going with limited economic growth. With an economy based primarily on tourism, trade, and agriculture, Greece lacks an established competitive industry and an innovation-friendly environment, resulting in a low export ratio given the small size of the country and its long-time EU-membership. Instead, Greece exports only its nation's talent, with low returns. To become prosperous, the country must better capitalize on its Eurozone membership and add innovative sectors to its economic structure. Given Greece's hidden assets, such as the attractiveness of the country, a small number of strong research centers and an impressive diaspora in research, finance and business, we envision a Greek “Silicon Valley” and propose a ten point policy plan to achieve that goal.
Workplace innovations often take the form of making suggestions about small-range improvements, for example, of processes and work procedures. Research on innovation suggests that people holding a novel idea will often consult their peers first in order to gauge their potential approval and support before proposing the idea to formal decision makers. We argue that peer evaluators’ intentions to support an innovative idea depend on the idea’s capacity to satisfy or threaten the evaluator’s achievement motive. Support intentions will be higher if the idea satisfies the evaluators’ achievement motive (idea-motive congruence), and lower if it threatens their achievement motive (idea-motive incongruence); evaluators’ affective response is proposed to mediate this effect. Moreover, the intentions attributed to the idea presenter are proposed to affect peers’ support intentions. The results of two scenario-based experiments (N = 153 and 123) confirm that motive-incongruent implications of an innovative idea, in particular regarding their fear of failure, reduce the likelihood for peers’ support intentions. Results on affective responses were inconsistent across studies, whereas perceiving the idea presenter to hold prosocial intentions was positively related to idea support. Implications for the evaluation of ideas are discussed.
Both entrepreneurship and innovation play a key role for business growth and economic development and are conceptually highly intertwined. Both fields have received extensive attention that has resulted in a large number of publications. The aim of this work is to provide an overview on the coevolution of entrepreneurship and innovation over the last decades, with particular attention to recent research trends. To track the evolution at the intersection of both fields, we employ a bibliometric analysis, which allowed us to identify the key concepts, the backbone of research, and to provide a systematic classification of main research themes diagnosed including: 1) entrepreneurial innovation and digital transformation, 2) sustainable innovation and entrepreneurship, 3) product innovation and knowledge, 4) entrepreneurial orientation and leadership, and 5) regional entrepreneurship and innovation (innovative entrepreneurship and historical roots). The findings of this bibliometric review are reported in the form of a knowledge graph that represents the results obtained in terms of the knowledge base (key terms), knowledge domains, and knowledge evolution (themes and bursts), based on which themes for future research are suggested.
Divergent thinking is the ability to produce numerous and diverse responses to questions or tasks, and it is used as a predictor of creative achievement. It plays a significant role in the business organization’s innovation process and the recognition of new business opportunities. Drawing upon the cumulative process model of creativity in entrepreneurship, we hypothesize that divergent thinking has a lasting effect on post-launch entrepreneurial outcomes related to innovation and growth, but that this relation might not always be linear. Additionally, we hypothesize that domain-specific experience has a moderating role in this relation. We test our hypotheses based on a representative longitudinal sample of 457 German business founders, which we observe up until 40 months after start-up. We find strong relative effects for innovation and growth outcomes. For survival we find conclusive evidence for non-linearities in the effects of divergent thinking. Additionally, we show that such effects are moderated by the type of domain-specific experience that entrepreneurs gathered pre-launch, as it shapes the individual’s ideational abilities to fit into more sophisticated strategies regarding entrepreneurial creative achievement. Our findings have relevant policy implications in characterizing and identifying business start-ups with growth and innovation potential, allowing a more efficient allocation of public and private funds.
Mit dem FREI DAY wurde ein neues Format entwickelt, welches schulisches Lernen an den globalen Nachhaltigkeitszielen ausrichten und zukunftsrelevante Kompetenzen von Kindern und Jugendlichen fördern soll. Ob es erfolgreich im Bildungssystem implementiert werden kann, wird insbesondere von der Veränderungsbereitschaft der Lehrkräfte abhängen. Um sie bei der Umsetzung unterstützen zu können, ist notwendig, ihre individuelle Perspektive im Implementationsprozess zu erfassen. In der vorliegenden Arbeit wird untersucht, inwiefern sich das Kollegium einer Berliner Grundschule mit dem FREI DAY auseinandersetzt. Dazu wird auf die Stages of Concern von Hall und Hord (2015) zurückgegriffen und ein Interview mit der Lehrerin geführt, die die Umsetzung des Lernformats an der Schule koordiniert. Ihre Antworten werden durch eine qualitative Analyse des Interviewtranskripts ausgewertet und vor dem Hintergrund der Forschungsfrage interpretiert. Es zeigt sich, dass das Kollegium hinsichtlich der Auseinandersetzung mit dem FREI DAY in drei Gruppen eingeteilt werden kann. Während die erste von Anfang an begeistert und dazu bereit war, das Lernformat an der Schule einzuführen, war sich die zweite zunächst nicht sicher, ob sie sich die Umsetzung zutraut. Schließlich gab es auch eine Gruppe von Lehrkräften, die kein Interesse daran hatte, sich eingehender mit dem Konzept des FREI DAYS zu befassen und sich dementsprechend auch nicht an der Umsetzung beteiligte. Die Ergebnisse der Untersuchung weisen darauf hin, dass Transferunterstützung, insbesondere vonseiten der Schulleitung, notwendig ist, wenn das Lernformat langfristig in unserem Bildungssystem verankert werden soll. Aufgrund des explorativen Charakters der Studie sind jedoch weitere Untersuchungen in dieser Hinsicht erforderlich.
At the beginning of 2020, with COVID-19, courts of justice worldwide had to move online to continue providing judicial service. Digital technologies materialized the court practices in ways unthinkable shortly before the pandemic creating resonances with judicial and legal regulation, as well as frictions. A better understanding of the dynamics at play in the digitalization of courts is paramount for designing justice systems that serve their users better, ensure fair and timely dispute resolutions, and foster access to justice. Building on three major bodies of literature —e-justice, digitalization and organization studies, and design research— Designing for Digital Justice takes a nuanced approach to account for human and more-than-human agencies.
Using a qualitative approach, I have studied in depth the digitalization of Chilean courts during the pandemic, specifically between April 2020 and September 2022. Leveraging a comprehensive source of primary and secondary data, I traced back the genealogy of the novel materializations of courts’ practices structured by the possibilities offered by digital technologies. In five (5) cases studies, I show in detail how the courts got to 1) work remotely, 2) host hearings via videoconference, 3) engage with users via social media (i.e., Facebook and Chat Messenger), 4) broadcast a show with judges answering questions from users via Facebook Live, and 5) record, stream, and upload judicial hearings to YouTube to fulfil the publicity requirement of criminal hearings. The digitalization of courts during the pandemic is characterized by a suspended normativity, which makes innovation possible yet presents risks. While digital technologies enabled the judiciary to provide services continuously, they also created the risk of displacing traditional judicial and legal regulation.
Contributing to liminal innovation and digitalization research, Designing for Digital Justice theorizes four phases: 1) the pre-digitalization phase resulting in the development of regulation, 2) the hotspot of digitalization resulting in the extension of regulation, 3) the digital innovation redeveloping regulation (moving to a new, preliminary phase), and 4) the permanence of temporal practices displacing regulation. Contributing to design research Designing for Digital Justice provides new possibilities for innovation in the courts, focusing at different levels to better address tensions generated by digitalization. Fellow researchers will find in these pages a sound theoretical advancement at the intersection of digitalization and justice with novel methodological references. Practitioners will benefit from the actionable governance framework Designing for Digital Justice Model, which provides three fields of possibilities for action to design better justice systems. Only by taking into account digital, legal, and social factors can we design better systems that promote access to justice, the rule of law, and, ultimately social peace.
Design thinking is a well-established practical and educational approach to fostering high-level creativity and innovation, which has been refined since the 1950s with the participation of experts like Joy Paul Guilford and Abraham Maslow. Through real-world projects, trainees learn to optimize their creative outcomes by developing and practicing creative cognition and metacognition. This paper provides a holistic perspective on creativity, enabling the formulation of a comprehensive theoretical framework of creative metacognition. It focuses on the design thinking approach to creativity and explores the role of metacognition in four areas of creativity expertise: Products, Processes, People, and Places. The analysis includes task-outcome relationships (product metacognition), the monitoring of strategy effectiveness (process metacognition), an understanding of individual or group strengths and weaknesses (people metacognition), and an examination of the mutual impact between environments and creativity (place metacognition). It also reviews measures taken in design thinking education, including a distribution of cognition and metacognition, to support students in their development of creative mastery. On these grounds, we propose extended methods for measuring creative metacognition with the goal of enhancing comprehensive assessments of the phenomenon. Proposed methodological advancements include accuracy sub-scales, experimental tasks where examinees explore problem and solution spaces, combinations of naturalistic observations with capability testing, as well as physiological assessments as indirect measures of creative metacognition.
Although party competition is widely regarded as an important part of a working democracy, it is rarely analysed in political science literature. This article discusses the basic properties of party competition, especially the patterns of interaction in contemporary party systems. Competition as a phenomenon at the macro level has to be carefully distinguished from contest and cooperation as the forms of interaction at the micro level. The article gives special attention to the creation of issue innovations. Contrary to existing approaches, I argue that not only responsiveness but also innovation are necessary to guarantee a workable democratic competition. Competition takes place on an issue market, where parties can discover voters' demands. Combined with the concept of institutional veto points, the article presents hypotheses on how institutions shape the possibility for programmatic innovations.
Although party competition is widely regarded as an important part of a working democracy, it is rarely analysed in political science literature. This article discusses the basic properties of party competition, especially the patterns of interaction in contemporary party systems. Competition as a phenomenon at the macro level has to be carefully distinguished from contest and cooperation as the forms of interaction at the micro level. The article gives special attention to the creation of issue innovations. Contrary to existing approaches, I argue that not only responsiveness but also innovation are necessary to guarantee a workable democratic competition. Competition takes place on an issue market, where parties can discover voters’ demands. Combined with the concept of institutional veto points, the article presents hypotheses on how institutions shape the possibility for programmatic innovations.
City mice and country mice
(2021)
The ability to produce innovative behaviour is a key determinant in the successful coping with environmental challenges and changes. The expansion of human-altered environments presents wildlife with multiple novel situations in which innovativeness could be beneficial. A better understanding of the drivers of within-species variation in innovation propensity and its consequences will provide insights into the traits enabling animals to thrive in the face of human-induced rapid environmental change. We compared problem-solving performance of 31 striped field mice, Apodemus agrarius, originating from rural or urban environments in a battery of eight foraging extraction tasks. We tested whether differences in problem-solving performance were mediated by the extent and duration of the animal's exploration of the experimental set-ups, the time required to solve the tasks, and their persistence. In addition, we tested the influence of the diversity of motor responses, as well as of behavioural traits boldness and activity on problem-solving performance. Urban individuals were better problem solvers despite rural individuals approaching faster and interacting longer with the test set-ups. Participation rates and time required to solve a task did not differ between rural and urban individuals. However, in case of failure to solve a task, rural mice were more persistent. The best predictors of solving success, aside from the area of origin, were the time spent exploring the set-ups and boldness, while activity and diversity of motor responses did not explain it. Problem-solving ability could thus be a contributing factor to the successful coping with the rapid and recent expansion of human-altered environments.
From an active labor market policy perspective, start-up subsidies for unemployed individuals are very effective in improving long-term labor market outcomes for participants. From a business perspective, however, the assessment of these public programs is less clear since they might attract individuals with low entrepreneurial abilities and produce businesses with low survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders who started from non-unemployment and did not receive the subsidy. The data allows us to analyze their business performance up until 40 months after business formation. We find that formerly subsidized founders lag behind not only in survival and job creation, but especially also in innovation activities. The gaps in these business outcomes are relatively constant or even widening over time. Hence, we do not see any indication of catching up in the longer run. While the gap in survival can be entirely explained by initial differences in observable start-up characteristics, the gap in business development remains and seems to be the result of restricted access to capital as well as differential business strategies and dynamics. Considering these conflicting results for the assessment of the subsidy program from an ALMP and business perspective, policy makers need to carefully weigh the costs and benefits of such a strategy to find the right policy mix.
We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis.