Employment Effects of Different Innovation Activities: Microeconometric Evidence

ZEW Discussion Paper Nr. 04-73 // 2004
ZEW Discussion Paper Nr. 04-73 // 2004

Employment Effects of Different Innovation Activities: Microeconometric Evidence

Using the model recently developed by Jaumandreu (2003) this paper reports new results on the relationship between innovation and employment growth in Germany. The model is tailor-made for analysing firm-level employment effects of innovations using specific information provided by CIS data. It establishes a theoretical link between employment growth and innovation output. The econometric analysis confirms that product innovations have a positive impact on employment. In contrast to previous studies, this effect is independent of the novelty degree. Moreover, different employment effects between manufacturing and service firms regarding process innovations were found. Finally, from a cross country perspective the results for Germany are similar to those found for Spain and the UK.

Peters, Bettina (2004), Employment Effects of Different Innovation Activities: Microeconometric Evidence, ZEW Discussion Paper Nr. 04-73, Mannheim.

Autoren/-innen Prof. Dr. Bettina Peters