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Innovation and Job Creation in a Small Open Economy
Evidence from Norwegian Manufacturing Plants 1982-92

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Author Info
Tor Jakob Klette and Svein Erik Førre () (Statistics Norway)

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Abstract

It is often claimed that the opportunities to create new manufacturing jobs in open, high-cost economies such as Norway, are concentrated in products which are technologically advanced and knowledge intensive. This paper examines the relationship between job creation and innovation, as measured by R&D investments, in Norwegian manufacturing. We compare job creation in plants belonging to R&D firms to plants belonging to firms without R&D. We also compare job creation in plants belonging to high and low tech industries. Our data set covers more than 80 percent of manufacturing employment in Norway over the period 1982-92. The paper challenges the optimistic view about job creation in R&D intensive firms and high-tech industries. Some main findings are: (i) Net job creation is not higher in high-tech industries. (ii) There is no clear-cut positive relationship between net job creation and the R&D-intensity of the firm. (iii) There is less net job creation and less job-security in R&D-intensive firms in the late 1980s and early 1990s.

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Publisher Info
Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 159.

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Date of creation: Dec 1995
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Handle: RePEc:ssb:dispap:159

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Related research
Keywords: R&D; innovation; job creation; job destruction.;

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Find related papers by JEL classification:
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

Cited by:
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  1. Frode Johansen & Tor Jakob Klette, 1998. "Accumulation of R&D Capital and Dynamic Firm Performance: A Not-So-Fixed Effect Model," Annales d'Economie et de Statistique, ADRES, issue 49-50, pages 16, Janvier-J. [Downloadable!]
    Other versions:
  2. Mika Maliranta, 2001. "Productivity Growth and Micro-level Restructuring. Finnish experiences during the turbulent decades," Discussion Papers 757, The Research Institute of the Finnish Economy. [Downloadable!]
  3. Heli Koski, 2008. "Public R&D Subsidies and Employment Growth - Microeconomic Evidence from Finnish Firms," Discussion Papers 1143, The Research Institute of the Finnish Economy. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
    Other versions:
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