Abstract
This paper seeks to untangle the role of managers’ growth willingness on investments in innovative activities, including R&D and market knowledge assimilation, and their subsequent roles in explaining growth in young firms. Using a longitudinal sample of 282 young Swedish firms, we find mediating relationships that help to better explain the innovation-growth relationship. Our findings highlight the importance of growth willingness and market knowledge activities in explaining innovative activities and growth in young firms, providing a novel perspective on the well- researched innovation-growth relationship. Implications for research and public policy are discussed.