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 …

dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by … product innovation may be offset by employment losses in related products, known as 'cannibalisation' or 'business stealing …' effects in the literature, by employment losses from process and organisational innovation and by general productivity …

This paper analyzes empirically the effects of innovation on employment at the firm level using a uniquely long panel … innovation categories. We find clearly positive effects for product and process innovations on employment growth with the effects … an additional positive effect on employment. -- employment ; innovation ; patent ; firm size ; panel data …