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Innovation persistence and employment dynamics

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  • Stefano Bianchini

    (BETA, University of Strasbourg)

  • Gabriele Pellegrino

    (École Polytechnique Fédérale de Lausanne & IEB)

Abstract

This paper examines the effect of persistence in product and process innovations on the employment dynamics of a representative sample of Spanish manufacturing firms observed over more than 20 years. We build on a conceptual framework that links innovation persistence, employment growth and the persistence of this growth in the long-run. Using dynamic panel GMM and survival analysis techniques, we find that persistence in product innovation affects both employment growth and the sustainability of job creation over time significantly, whilst persistence in process innovation does not play any relevant role. The evidence we provide supports the notion that product innovation is more effective in spurring sustained employment growth when carried out systematically.

Suggested Citation

  • Stefano Bianchini & Gabriele Pellegrino, 2017. "Innovation persistence and employment dynamics," Working Papers 2017/03, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2017-03
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    More about this item

    Keywords

    Firm growth; job creation; innovation; persistence in innovation; path-dependence;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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