Figure 8.
The diagram shows R and D intensity on the left and a statement The greater the R and D intensity, the greater the dependence on cash flow. A triangle displays Low at the bottom and High at the top. From High, an arrow leads to Reinvestment, then to More risks in innovation, and to an oval labelled Increase the intensity, forming a cycle. On the left, S M E innovative with high-risk leads into the R and D intensity path, while No leads to No innovation and Low risk. The note explains that higher R and D intensity increases reliance on internal cash flow and innovation risk, reinforcing the cycle. Sources Created by the authors.The cycle of R&D investment and risk in innovative SMEs