Innovation and corporate employment growth revisited

Sverre J. Herstad () and Tore Sandven ()
Additional contact information
Sverre J. Herstad : NIFU Nordic Institute for Studies in Innovation, Research and Education, Oslo
Tore Sandven : NIFU Nordic Institute for Studies in Innovation, Research and Education, Oslo

No 2015/3, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

Abstract: Using Norwegian Community Innovation Survey (CIS) data linked to public employment registers covering the years 2004 - 2010, this paper investigates the relationship between employment growth prior to the event of innovation, innovation output, and growth performance after the event. Positive growth ex ante generally strengthens growth ex post. Moreover, it increases the likelihood that innovations are introduced during the intermediate period that strengthen employment performances further. This effect is present for all levels of growth only when new products, production processes and support functions are introduced in tandem. Standalone improvements of products, by contrast, influence only the probability of survival, whereas standalone improvements of production processes and support functions support ex post growth specifically in the upper tail of the distribution. Our findings challenge the common view that product innovations are more important to growth than process innovations, and reveal interdependencies between multi-faceted organizational capabilities, innovation output and employment performance.

Keywords: Capabilities; innovation; employment growth; Norway (search for similar items in EconPapers)
JEL-codes: J23 J24 O15 O33 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2015-02-08
New Economics Papers: this item is included in nep-ino, nep-lab, nep-lma, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201503_Herstad_Sandven.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:lucirc:2015_003

Access Statistics for this paper

More papers in Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research CIRCLE - Centre for Innovation Research, Lund University, PO Box 117, SE-22100 Lund, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Torben Schubert ().