Innovations, prices, and employment: A theoretical model and an empirical application for West-German manufacturing firms

Wernerr Smolny

No 37, Discussion Papers from University of Konstanz, Center for International Labor Economics (CILE)

Abstract: In this paper, a theoretical model of the impact of product and process innovations on output, capacity utilization, employment, and prices is developed. The model is estimated with micro-data for West German manufacturing firms from the ifo firm panel. The empirical results reveal that innovative firms exhibit a higher utilization and more output and employment growth than noninnovative firms. Innovations also change the market structure. The frequency of price and output changes is lower and the frequency of employment changes is higher in sectors with a large share of product innovators, and vice versa in sectors with a large share of process innovators.

Keywords: Innovations; price setting; market structure (search for similar items in EconPapers)
JEL-codes: C33 D21 O31 (search for similar items in EconPapers)
Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/92437/1/71719681X.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:zbw:koncil:37

Access Statistics for this paper

More papers in Discussion Papers from University of Konstanz, Center for International Labor Economics (CILE) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().