Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)

This study explores the impact of digitalization on technological (product and process) innovations in German small and medium-sized enterprises (SMEs). In particular, three forms of digitalization are considered – digitalization in production and logistics, digital value chains, and big data analytics. Empirical analysis utilizes the Mannheim Innovation Panel (MIP) dataset of German SMEs operating in manufacturing and service sectors. A binary probit model is separately estimated for micro, small and medium-sized firms to test if theoretically assumed positive innovation effects of digitalization occur in SMEs of different size. Empirical findings confirm that the impact of digitalization on innovation…