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The Impact of Innovation Activities on Employment in the Environmental Sector - Empirical Results for Germany at the firm Level

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  • Jens Horbach

    ()
    (Universität Augsburg)

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    Abstract

    The paper explores employment effects of environmental product innovations at the firm level. Whereas there are many studies analysing this relationship for general innovations, studies for the environmental sector are still rare. On the background of high political attention connected with hopeful employment perspectives, a separate analysis of this sector in comparison to other, non-environmental fields seems to be very important. The empirical analysis is based on the establishment panel of the Institute for Employment Research (Nuremberg). The econometric results show that the influence of environmental innovation activities on the employment development is significantly positive and the quanti-tative impact seems to be larger than in other, non-environmental fields. Within a bivariate probit model, the determinants of environmental innovation activities are also explored. They may be interpreted as indirect influences on the employment development of the firm. The results show that the improvement of the innovative capacities by R&D and further education measures and the existence of highly qualified human capital are significantly important for the development of new products in the environmental sector.

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    Bibliographic Info

    Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

    Volume (Year): 230 (2010)
    Issue (Month): 4 (August)
    Pages: 403-419

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    Handle: RePEc:jns:jbstat:v:230:y:2010:i:4:p:403-419

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    Related research

    Keywords: Employment; environmental sector; innovation behaviour;

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    References

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    1. Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2008. "What triggers environmental management and innovation? Empirical evidence for Germany," Ecological Economics, Elsevier, vol. 66(1), pages 153-160, May.
    2. Rennings, Klaus & Zwick, Thomas, 2001. "The employment impact of cleaner production on the firm level: empirical evidence from a survey in five European countries," ZEW Discussion Papers 01-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Rupert Harrison & Jordi Jaumandreu & Jacques Mairesse & Bettina Peters, 2008. "Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data from Four European Countries," NBER Working Papers 14216, National Bureau of Economic Research, Inc.
    4. Stefan Lachenmaier & Horst Rottmann, 2007. "Employment Effects of Innovation at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 227(3), pages 254-272, June.
    5. Pfeiffer, Friedhelm & Rennings, Klaus, 1999. "Employment impacts of cleaner production: evidence from a German study using case studies and surveys," ZEW Discussion Papers 99-32, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Jean BELIN (GREThA, CNRS, UMR 5113) & Jens HORBACH (University of Applied Sciences Augsburg) & Vanessa OLTRA (GREThA, CNRS, UMR 5113), 2011. "Determinants and Specificities of Eco-innovations – An Econometric Analysis for the French and German Industry based on the Community Innovation Survey," Cahiers du GREThA 2011-17, Groupe de Recherche en Economie Théorique et Appliquée.
    7. Peters, Bettina, 2005. "Employment Effects of Different Innovation Activities: Microeconometric Evidence," ZEW Discussion Papers 04-73 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2007. "Employment, Innovation, and Productivity: Evidence from Italian Microdata," NBER Working Papers 13296, National Bureau of Economic Research, Inc.
    9. Morris, Stephen, 2007. "The impact of obesity on employment," Labour Economics, Elsevier, vol. 14(3), pages 413-433, June.
    10. Mariacristina Piva & Marco Vivarelli, 2005. "Innovation and Employment: Evidence from Italian Microdata," Journal of Economics, Springer, vol. 86(1), pages 65-83, October.
    11. Tommaso Antonucci & Mario Pianta, 2002. "Employment Effects of Product and Process Innovation in Europe," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 295-307.
    12. Omar M. G. Keshk, 2003. "CDSIMEQ: A program to implement two-stage probit least squares," Stata Journal, StataCorp LP, vol. 3(2), pages 157-167, June.
    13. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-84, April.
    14. Harabi, Najib, 2000. "Employment Effects of Ecological Innovations: An Empirical Analysis," MPRA Paper 4395, University Library of Munich, Germany.
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