One reason is that the expansion in the number of innovating firms has not been accompanied by a corresponding increase in innovation expenditure. Firms that begin innovating seem to focus on incremental and non-technological innovation, with little if any link to product innovation. Another reason for the lack of increase in sales involving product innovation is that the share of firms with more ambitious (“radical”) innovations, measured by new-to-market innovation, has not increased much in the past ten years. The former group includes so-called “frontrunner” firms (see Berger et al.,