Bala Subrahmanya (2001) observed that SMEs of North East England pursued radical
innovations as a strategy of firm growth though he did not explicitly probe the
relationship between innovation and growth. Danneels and Kleinschmidt (2001) claimed
that innovative products present great opportunities for SMEs in terms of growth and
expansion into new areas though they did not study the relationship between innovation
and growth. Lumiste et al. (2004) found that innovation helped Estonian SMEs to
improve their performance in terms of market share and diversified range of goods and
services. However, they did not study whether the size of those SMEs changed over time.