Numerical labor flexibility and innovation outcomes of start-up firms: A panel data analysis

Masatoshi Kato and Haibo Zhou
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Haibo Zhou: Faculty of Economics and Business, University of Groningen

No 146, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: Using a panel data set based on repeated questionnaire surveys in Japan, this study examines the effects of numerical labor flexibility on innovation outcomes of start-up firms, a topic that has not been well examined in the literature. Using a random-effects probit model, the estimation results indicate that the use of temporary employees significantly increases the probability of product innovation. In addition, numerical flexibility, measured as external labor turnover of regular employees, initially increases and then decreases the probability of patent application. The implications of our findings are discussed.

Keywords: start-up firm; numerical flexibility; regular employee flexibility; nonregular employee flexibility; innovation outcome; panel data (search for similar items in EconPapers)
JEL-codes: J63 M13 M50 O32 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2016-08, Revised 2016-08
New Economics Papers: this item is included in nep-ino, nep-lab, nep-sbm and nep-tid
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http://192.218.163.163/RePEc/pdf/kgdp146.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Numerical labor flexibility and innovation outcomes of start-up firms: A panel data analysis (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:146

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