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...

Using data from a survey of German manufacturing firms, this paper empirically tests the hypothesis that investment in ICT enables product innovation at the firm level. The empirical approach employs a value-added model, which controls for time-invariant firm characteristics. We instrument with...