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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
  • Svein Erik Førre

    ()
    (Statistics Norway)

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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Bibliographic 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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Cited by:
  1. Harrison, Rupert & Jaumandreu Balanzo, Jordi & Mairesse, Jacques & Peters, Bettina, 2008. "Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data From Four European Countries," ZEW Discussion Papers 08-111, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Maliranta, Mika, 2001. "Productivity Growth and Micro-level Restructuring. Finnish experiences during the turbulent decades," Discussion Papers 757, The Research Institute of the Finnish Economy.
  3. Koski, Heli, 2008. "Public R&D Subsidies and Employment Growth - Microeconomic Evidence from Finnish Firms," Discussion Papers 1143, The Research Institute of the Finnish Economy.
  4. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2011. "R&D and Employment: Some Evidence from European Microdata," IZA Discussion Papers 5908, Institute for the Study of Labor (IZA).

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