The Innovation-Employment Nexus in Europe

The question of the determinants of employment in innovative firms in Europe is analyzed. Weuse data from European Innovation Scoreboard that consider 36 countries in the period 2000-2019. Results show that the level of employment for innovative firms is positively associated with “Average annual population growth”, “Basic-school entrepreneurial education and training”, “Ease of starting a business”, “Firm investments”; “Foreign controlled enterprises-share of value added”,“Government procurement of advanced technology products”, “Human resources”, “Sales impacts” and negatively associated with “Buyer sophistication (SD)”, “Linkages”