In this study, we exploit panel data of 2450 manufacturing firms from a sample of 30 African
countries from 2013 to 2023 to examine the link between firm performance and innovation. Focusing
on innovation and firm growth, this study addresses R&D activities, product innovation, process
innovation, and organizational practices. Applying various methods, the findings show that firms that
succeed in process innovation or R&D activities achieve much higher performance. This performance
is stronger for high-growth firms. Moreover, firms implementing new management practices tend to
increase sales but not employment, with higher returns at the 50th percentile. Organizational innovation
is better for firms that are about to face high demand. The introduction of new products is
not necessarily accompanied by increased sales except for the lower quantiles. New products are
especially risky and do not result in employment growth. The existence of competitive pressure and
the payment of bribes by firms to public officials speed up sales.

Innovation; R&D; Growth