The results clearly indicate that the percentage share of innovated products in total sales
has a significant influence on the average rate of growth of GVA in innovative SMEs in
all the three sectors. With a one percent improvement of innovated products in total sales,
the rate of growth of GVA is likely to improve by 0.50 per cent. However, equally
important is the increase in capital as well as labour. Thus if an innovative SME could
expand the scale of production in terms of capital and labour and achieve an increase in
innovation sales, it will be able to experience a significant improvement in the growth of
GVA. This enables us to conclude that innovation sales do contribute to firm growth in
terms of GVA.