Article

Employment Effects of Innovation at the Firm Level

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) 02/2007; 227(3):254-272.
Source: RePEc

ABSTRACT This paper analyzes empirically the effects of innovation on employment at the firm level using a uniquely long panel dataset of German manufacturing firms. The overall effect of innovations on employment often remains unclear in theoretical contributions due to reverse effects. We distinguish between product and process innovations and additionally introduce different innovation categories. We find clearly positive effects for product and process innovations on employment growth with the effects for process innovations being slighthly higher. For product innovations that involved patent applications we can identify an additional positive effect on employment.

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