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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...
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presents some empirical evidence on the effects of innovation on employment growth and therefore on firms' productivity with … stemming from process innovation. The sources of employment growth during the period are split equally between the net … contribution of product innovation and the net contribution from sales growth of old products. However, the contribution of product …
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