Employment, Innovation, and Productivity: Evidence from Italian Microdata
AbstractItalian manufacturing firms have been losing ground with respect to many of their European competitors. This paper presents some empirical evidence on the effects of innovation on employment growth and therefore on firms' productivity with the goal of understanding the roots of such poor performance. We use firm level data from the last three surveys on Italian manufacturing firms conducted by Mediocredito-Capitalia, which cover the period 1995-2003. Using a modified version of the model proposed by Harrison, Jaumandreu, Mairesse and Peters (2005), which separates employment growth rates into those associated with old and new products, we provide robust evidence that there is no employment displacement effect stemming from process innovation. The sources of employment growth during the period are split equally between the net contribution of product innovation and the net contribution from sales growth of old products. However, the contribution of product innovation is somewhat lower than that for the four comparison European countries considered by Harrison et al.
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Bibliographic InfoPaper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 043.
Date of creation: 2006
Date of revision:
innovation; employment; productivity; Italy;
Other versions of this item:
- Jacques Mairesse, 2008. "Employment, innovation, and productivity: evidence from Italian microdata," Industrial and Corporate Change, Oxford University Press, vol. 17(4), pages 813-839, August.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2007. "Employment, innovation, and productivity: Evidence from italian microdata," Temi di discussione (Economic working papers) 622, Bank of Italy, Economic Research and International Relations Area.
- Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2006. "Employment, innovation and productivity: evidence from Italian microdata," IFS Working Papers W06/24, Institute for Fiscal Studies.
- 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.
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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