The impact of innovation on employment: firm- and industry-level evidence from Estonia

Jaanika Meriküll

No 2008-01, Bank of Estonia Working Papers from Bank of Estonia

Abstract: This paper investigates the implication of innovation on employment at the firm and industry levels. The paper contributes to the literature in two respects. First, it proceeds from the data of a catch-up country undergoing a very rapid economic development. Most of the empirical investigations use data from developed and technologically leading countries. The second contribution concerns the nature of the data in use; we develop a unique database merging the data of the Estonian Commercial Register with two consecutive Estonian Community Innovation Surveys (CIS), the CISIII for 1998-2000 and CISIV for 2002-2004. Our results coincide with the results on developed economies in the respect that innovation activity has a positive effect on employment and that product innovation has a stronger and a more positive employment effect. Both of these effects are consistent over firm and industry levels. This result is also confirmed by the insignificance of the spillover effects of an industry's innovation on employment by firms

Keywords: innovation (technological change); employment; catch-up economy (search for similar items in EconPapers)
JEL-codes: D21 J23 O33 (search for similar items in EconPapers)
Date: 2008-10-30, Revised 2008-10-30
New Economics Papers: this item is included in nep-ent and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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