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Patenting Behaviour and Employment Growth in German Start-up Firms: A Panel Data Analysis

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  • Niefert, Michaela

Abstract

The effect of innovations on employment at the firm level is theoretically ambiguous. The present paper analyses this relationship using panel data on German start-up firms as well as German patent data. It employs different indicators of patenting activity. By applying fixed-effects and first-differencing panel data methods it is shown that patenting activity has a positive effect on employment growth that is typically most pronounced in the second year after application. The effect seems to diminish with firm age. Patenting firms do not generally exhibit higher growth rates than their non-patenting counterparts; instead, growth performance depends on their patenting activity over time. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 05-03.

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Date of creation: 2005
Date of revision:
Handle: RePEc:zbw:zewdip:2894

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Related research

Keywords: employment growth; patents; Gibrat´s law; dynamic panel data models;

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Cited by:
  1. repec:hal:journl:halshs-00155762 is not listed on IDEAS
  2. Alexander Coad & Rekha Rao, 2007. "The Employment Effects of Innovations in High-Tech Industries," Papers on Economics and Evolution 2007-05, Max Planck Institute of Economics, Evolutionary Economics Group.
  3. repec:hal:journl:halshs-00175042 is not listed on IDEAS
  4. repec:hal:cesptp:halshs-00118797 is not listed on IDEAS
  5. Alex Coad & Rekha Rao, 2011. "The firm-level employment effects of innovations in high-tech US manufacturing industries," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 255-283, May.
  6. Coad, Alex & Rao, Rekha, 2008. "Innovation and firm growth in high-tech sectors: A quantile regression approach," Research Policy, Elsevier, vol. 37(4), pages 633-648, May.
  7. repec:hal:journl:halshs-00118797 is not listed on IDEAS
  8. Fabienne Fortanier & Selwyn Moons, 2011. "Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects," De Economist, Springer, vol. 159(4), pages 511-531, December.
  9. Alex Coad & Rekha Rao, 2006. "Innovation and firm growth in "complex technology" sectors : a quantile regression approach," Cahiers de la Maison des Sciences Economiques r06050, Université Panthéon-Sorbonne (Paris 1).

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