Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data From Four European Countries
This paper studies the impact of process and product innovations introduced by firms on employment growth in these firms. A simple model that relates employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products is developed and estimated using comparable firm-level data from France, Germany, Spain and the UK. Results show that displacement effects induced by productivity growth in the production of old products are large, while those associated with process innovations, which are likely to be compensated by price decreases, appear to be small. The effects related to product innovations are, however, strong enough to overcompensate these displacement effects.
Year of publication: |
2008
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Authors: | Harrison, Rupert ; Jaumandreu Balanzo, Jordi ; Mairesse, Jacques ; Peters, Bettina |
Institutions: | Zentrum für Europäische Wirtschaftsforschung (ZEW) |
Subject: | Innovation | employment | community innovation surveys |
Saved in:
freely available
Extent: | application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Number 08-111 |
Classification: | J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment ; L1 - Market Structure, Firm Strategy, and Market Performance ; O31 - Innovation and Invention: Processes and Incentives ; O33 - Technological Change: Choices and Consequences; Diffusion Processes ; D2 - Production and Organizations |
Source: |
Persistent link: https://www.econbiz.de/10005097602