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What is innovation and what determines its development in manufacturing firms? The literature on the topic has evolved exponentially during the last decades. However, the divergence of the research results makes it so that the innovation process is still poorly understood. Relying on a systematic review of empirical studies published between 1993 and 2003, this article propose and discuss a framework which brings together a set of variables related to the innovation process and the internal and contextual factors driving it. The ensuing results highlight several avenues which would help managers and policy makers to better foster innovation and researchers to better channel their efforts in studying the phenomenon.