Employment Effects of Innovation at the Firm Level

Jahrbücher für Nationalökonomie und Statistik (Impact Factor: 0.27). 02/2007; 227(3):254-272.
Source: RePEc


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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Available from: Stefan Lachenmaier
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    • "Approaching employment dynamics from the side of industrial organization, a stylized fact can be seen in the negative interrelation between employment growth and plant age (Evans, 1987, Caves, 1998, or Hart, 2000). Another decisive impact comes from a plant's innovation activities (Audretsch/Dohse, 2007, Lachenmaier/Rottmann, 2007). "
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