Innovation persistence and employment dynamics

Stefano Bianchini and Gabriele Pellegrino

Research Policy, 2019, vol. 48, issue 5, 1171-1186

Abstract: This paper examines the effect of persistence in product and process innovations on the employment dynamics of a representative sample of Spanish manufacturing firms observed over more than 20 years. We build a conceptual framework that links innovation, its persistence, and different trajectories of employment growth. This framework suggests that firms might show different responses in terms of their employment growth and its persistence depending on the degree of persistence in their product and process innovations. We construct a synthetic indicator of innovation persistence at the firm-level and link this indicator to different employment trajectories. We find that persistence in product innovation affects both employment growth and the sustainability of job creation over time significantly, whilst persistence in process innovation does not play any relevant role. Also, the positive effect of persistence in product innovation is particularly strong for SMEs. The evidence we provide supports the notion that product innovation is more effective in spurring sustained employment growth when carried out systematically.

Keywords: Firm growth; Job creation; Persistence in innovation; Innovation spell; Path-dependence (search for similar items in EconPapers)
JEL-codes: D22 O31 O32 O33 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Working Paper: Innovation persistence and employment dynamics (2019)
Working Paper: Innovation persistence and employment dynamics (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:48:y:2019:i:5:p:1171-1186

DOI: 10.1016/j.respol.2018.12.008

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