). A later study of Japanese manufacturing firms (Yasuda 2005) shows that R&D expenditure per employee has a significant positive effect on firm growth. A similar study of Taiwanese electronics firms (Yang and Huang 2005) shows that an increase in R&D induces a higher growth rate, and that this impact is larger in small firms. Firms' innovation intensity has usually been measured using their R&D expen- diture or patenting intensity as variables. In later studies also other measures have been included, such as comparison of product and process innovations (Harrison et al. 2008) or comparison of product innovation, process innovation, organizational changes and marketing innovation (Morone and Testa 2008). In the first case, firm level data from France, Germany, Spain and UK indicates that, in manufacturing, product innovation is associated with employment growth whereas process innova- tion tends to displace employment. In the second case, the results from 2,600 Italian manufacturing firms indicate that process innovation and organizational change have a stronger effect on a firm's growth than product innovation and marketing innovation. Process Improvement Through Software Table 1 Innovations and firm growth: findings available in literature Authors Industry Main results Method Kuznets Product innovations are History of central for economic technology growth Schumpeter Historical role of History of technological innovation technology Del Monte, 1992-1997 Italian firms The growth rates of sales and Statistical Papagni personnel in firms conducting R&D were larger than those of firms without R&D Yasuda 1992-1998 Japanese R&D expenditure per Statistical manufacturing employee has a significant positive effect on firm growth Yang, 1986-1999 Taiwanese Increase in R&D induces a Statistical Huang electronics higher growth rate Harrison 1998-2000 French, German, In manufacturing, product Statistical et al. Spanish and innovation is associated UK firms with employment growth whereas process innovation tends to displace em