Extending a recently developed multiproduct model and distinguishing between different product and process innovation activities, this paper reports new results on the relationship between innovation and employment growth in manufacturing and service firms in Germany. The model is tailor-made...

This paper investigates whether firms innovate persistently or discontinuously over time using an innovation panel data set on German manufacturing and service firms for the period 1994-2002. We find that innovation behaviour is permanent at the firmlevel to a very large extent. Using a dynamic...