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Employment Effects of Innovation at the Firm Level

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Author Info
Stefan Lachenmaier
Horst Rottmann ()

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Abstract

This paper analyzes empirically the effects of innovation on employment at the firm levelusing a uniquely long panel dataset of German manufacturing firms. The overall effect ofinnovations on employment often remains unclear in theoretical contributions due to reverseeffects. We distinguish between product and process innovations and introduce in additiondifferent innovation categories. We find clearly positive effects for product and processinnovations on employment growth with the effects for process innovations being slightlyhigher. The effects are stronger in small firms and differ between firms in former West andEast Germany.

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File URL: http://www.cesifo-group.de/DocDL/IfoWorkingPaper-27.pdf
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Publisher Info
Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Papers No. 27.

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Date of creation: 2006
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Handle: RePEc:ces:ifowps:_27

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Related research
Keywords: innovation; labour demand; employment; firm size; panel data;

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

Cited by:
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  1. Klaus Abberger & Sascha Becker & Barbara Hofmann & Klaus Wohlrabe, 2007. "Mikrodaten im ifo Institut für Wirtschaftsforschung – Bestand, Verwendung und Zugang," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 1(1), pages 27-42, June. [Downloadable!] (restricted)
  2. Stefan Lachenmaier & Horst Rottmann, 2007. "Effects of Innovation on Employment: A Dynamic Panel Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. 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. [Downloadable!] (restricted)
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