Economic crisis and innovation: Is destruction prevailing over accumulation?

► The 2008 economic crisis has severely reduced the short-term willingness of firms to invest in innovation. ► Before the crisis incumbent firms were more likely to expand their innovation investment. ► The crisis has changed the picture with a few, small firms and new entrants “swimming against the stream” as they expand their innovative activities. ► Overall, our findings suggest that during the depression firms' innovation behaviour is closer. ► To creative destruction, while before the depression there is an overall landscape of creative accumulation.