A growing literature investigates how firms' innovation input reacts to changes in the business cycle. However, so far … there is no evidence whether there is cyclicality in the effects of innovation on firm performance as well. In this paper …. (2014), our empirical analysis reveals four important findings: First, the net effect of product innovation on employment …

-technology manufacturing shows the strongest employment gains and losses from innovation, followed by knowledge-intensive services, low …-technology manufacturing and less knowledge-intensive services. The net contribution of innovation to employment growth is mostly positive, an … dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by …