Employment Effects of Innovation at the Firm Level

Stefan Lachenmaier () and Horst Fritz Rottmann ()
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Stefan Lachenmaier: Ifo Institute for Economic Research at the University of Munich

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2007, vol. 227, issue 3, pages 254-272

Abstract: This paper analyzes empirically the effects of innovation on employment at the firm level using a uniquely long panel dataset of German manufacturing firms. The overall effect of innovations on employment often remains unclear in theoretical contributions due to reverse effects. We distinguish between product and process innovations and additionally introduce different innovation categories. We find clearly positive effects for product and process innovations on employment growth with the effects for process innovations being slighthly higher. For product innovations that involved patent applications we can identify an additional positive effect on employment.

Keywords: Employment; innovation; patent; firm size; panel data (search for similar items in EconPapers)
JEL-codes: J23 O30 L60 (search for similar items in EconPapers)
Date: 2007

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Working Paper: Employment Effects of Innovation at the Firm Level (2006)
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