A closer look at the relationship between innovation and employment growth at the firm level
Sverre J. Herstad () and
Additional contact information
Sverre J. Herstad: University of Oslo
Tore Sandven: NIFU Nordic Institute for Studies in Innovation, Research and Education
Journal of Evolutionary Economics, 2020, vol. 30, issue 2, No 6, 375-399
Abstract This paper considers in detail how different types of innovation (products, processes, patents, combinations) are related to different employment growth characteristics (exit or survival, with employment upscaling or downscaling at moderate or high rates). Using Norwegian Community Innovation Survey (CIS) data collected in 2008 and merged with public employer-employee registers for the years 2004–2010, it finds that growth persists over time, and increases the probability that ‘bundles’ of complementary product and process innovations are introduced that strengthen employment further. Downscaling also persists, and reduces the probability that ‘bundles’ are introduced that could turn the negative trend. While standalone product innovations follow in the wake of rapid expansion, such have limited impact on employment beyond sustaining growth at moderate levels. Standalone process innovations, by contrast, tend to be introduced after a period of moderate growth, yet, might give rise to large subsequent expansions. These results demonstrate that innovation and employment growth are multi-dimensional characteristics of the firm, which are interlinked with each other in virtuous or vicious circles that unfolds over time.
Keywords: Innovation; Employment; Growth; Capabilities; Norway (search for similar items in EconPapers)
JEL-codes: D21 D22 L25 O33 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00191-019-00636-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:30:y:2020:i:2:d:10.1007_s00191-019-00636-9
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo
More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().