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1. Introduction
In entrepreneurship and management studies the innovativeness of growing firms has been discovered to be important in value and job creation ([3] Acs et al. , 2008; [10] Autio, 2009; [11] Autio and Höeltzl, 2008; [14] Bhide, 2000; [15] Birch, 1979; [26] Delmar et al. , 2003; [27] Deschryvere, 2008; [36] Henrekson and Johansson, 2008; [60] Parker et al. , 2010; [73] Storey, 1994). It is stated that innovations do not arise randomly but are the result of intentional and systematic processes ([12] Barringer et al. , 2005; [77] Teece, 1986; [50] Markides, 1998; [66] Santarelli and Piergiovanni, 1996; [79] Thornhill, 2006; [85] Von Hippel, 1982). The capability to create, transfer and exploit innovations is thought to have a positive impact in different regions and economies ([29] Fontes, 1997; [45] Kuratko and Hodgetts, 2001; [56] North and Smallbone, 2000; [73] Storey, 1994). The key conclusion from the studies cited previously is that there is a positive correlation between innovativeness and growth.
There have been comparatively few longitudinal studies that have examined the impact of conducting innovative R&D while simultaneously focusing on growth. It is a widely accepted that urban areas have higher performance and produce more original innovations than peripheral regions. Some empirical studies have shown that the operating environment of the firm moderates the relationship between sales growth rate and executives' propensity for risk taking ([22] Covin and Slevin, 1998). There is some empirical evidence that increases in annual sales growth can also boost the propensity to create innovations in the form of patents ([7] Arundel and Kabla, 1998). These findings could be taken to mean that the innovativeness of a growing firm is influenced by its location.
The relationship between size, innovation and performance has long been debated. Many empirical studies have sought to test the Schumpeterian hypothesis that large firms tend to have a resource advantage over smaller ones when it comes to the development and commercialization of new technologies. Small firms are widely regarded as promoters of economic growth ([83] Westhead and Storey, 1994) and as being capable of creating, transferring and exploiting innovations ([9] Autio, 1998; [29] Fontes, 1997; [45] Kuratko and Hodgetts, 2001). In addition, it is believed that small firms have a strong positive effect on...