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Technological innovations and the expected demand for skilled labour at the firm level

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Falk, Martin

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Abstract

This paper analyses the link between technological product and processes innovations and expectations about future employment for different types of labour in manufacturing. The empirical model allows for endogeneity of the firm?s innovation decision in the labour demand equations. The system of probit equations is estimated using simulated ML based on 800 West German firms. The empirical evidence for di¤erent measures of technological innovations indicates that introduction of new market products is more important than any other measure of product innovation in determining the expected employment probabilities for homogeneous labour. Furthermore, as expected, technological innovations have the strongest impact on university graduates. Joint implementation of new products and new processes have a stronger impact on the employment expectations of university graduates than product innovations alone. Labour quality and turnover growth are also important factors of employment growth. Finally, tests of the exogeneity assumption of new market products in the labour demand equations can not be rejected.

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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 99-59.

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Date of creation: 1999
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Handle: RePEc:zbw:zewdip:5272

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Related research
Keywords: labour demand; product and process innovations; R&D; educational qualification structure; manufacturing;

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Find related papers by JEL classification:
L8 - Industrial Organization - - Industry Studies: Services
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Karlsson, Charlie & Olsson, Ola, 1998. " Product Innovation in Small and Large Enterprises," Small Business Economics, Springer, vol. 10(1), pages 31-46, February. [Downloadable!] (restricted)
  2. Beise, Marian & Stahl, Harald, 1999. "Public research and industrial innovations in Germany," Research Policy, Elsevier, vol. 28(4), pages 397-422, April. [Downloadable!] (restricted)
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  3. Brouwer, Erik & Kleinknecht, Alfred, 1996. " Firm Size, Small Business Presence and Sales of Innovative Products: A Micro-econometric Analysis," Small Business Economics, Springer, vol. 8(3), pages 189-201, June.
  4. V A Hajivassiliou, 1997. "Some Practical Issues in Maximum Simulated Likelihood," STICERD - Econometrics Paper Series /1997/340, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  5. William H. Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Further Results," Journal of Economic Education, Helen Dwight Reid Foundation, vol. 29(4), pages 291-300. [Downloadable!]
  6. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD, Economics Department. [Downloadable!]
  7. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier. [Downloadable!] (restricted)
  8. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  9. Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-59, May.
  10. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Roper, Stephen, 1997. " Product Innovation and Small Business Growth: A Comparison of the Strategies of German, U.K. and Irish Companies," Small Business Economics, Springer, vol. 9(6), pages 523-37, December. [Downloadable!] (restricted)
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  12. Koebel, Bertrand & Falk, Martin, 1999. "Curvature conditions and substitution pattern among capital, energy, materials and heterogeneous labour," ZEW Discussion Papers 99-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mariacristina Piva & Marco Vivarelli, 2002. "The Skill Bias: comparative evidence and an econometric test," International Review of Applied Economics, Taylor and Francis Journals, vol. 16(3), pages 347-357, July. [Downloadable!] (restricted)
  2. Uschi Backes-Gellner & Arndt Werner, 2003. "Entrepreneurial Signaling: Success Factors for Innovative Start-Ups," Working Papers 0055, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Mar 2004. [Downloadable!]
  3. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2003. "The Skill Bias Effect of Technological and Organisational Change: Evidence and Policy Implications," IZA Discussion Papers 934, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Rammer, Christian & Schmiele, Anja, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  5. Anja Schmiele, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," Working Papers id:1547, esocialsciences.com. [Downloadable!]
  6. Schmiele, Anja & Rammer, Christian, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Peters, Bettina, 2004. "Employment Effects of Different Innovation Activities : Microeconometric Evidence," ZEW Discussion Papers 04-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
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