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Technological Innovation and Employment Reallocation

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  • Nathalie Greenan
  • Dominique Guellec

Abstract

type="main" xml:lang="en"> The paper describes the dynamics of employment at a firm and sector level in French industry and examines how far technological innovation can give account of it. We use a sample of 15,186 firms, over the period 1986–90. The two facts we want to explain at a firm and sector level are the net change in employment and the micro turmoil (transfers between competing firms). Innovating firms and sectors create jobs more than others over the medium run (5 years). Process innovation is more about job creation than product innovation at the firm level, but the converse is true at the sector level. This paradox is probably due to substitution effects (creative destruction).

Suggested Citation

  • Nathalie Greenan & Dominique Guellec, 2000. "Technological Innovation and Employment Reallocation," LABOUR, CEIS, vol. 14(4), pages 547-590, December.
  • Handle: RePEc:bla:labour:v:14:y:2000:i:4:p:547-590
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    File URL: http://hdl.handle.net/10.1111/1467-9914.00146
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    1. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-284, April.
    2. Nathalie Greenan & Emmanuel Duguet, 1997. "Le biais technologique : une analyse économétrique sur données individuelles," Revue Économique, Programme National Persée, vol. 48(5), pages 1061-1089.
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    5. Nathalie Greenan & Dominique Guellec, 1998. "Firm Organization, Technology And Performance: An Empirical Study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(4), pages 313-347.
    6. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    7. Katsoulacos, Y., 1984. "Product innovation and employment," European Economic Review, Elsevier, vol. 26(1-2), pages 83-108.
    8. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 819-863.
    9. Sylvie Lagarde & Éric Maurin & Constance Torelli, 1994. "Créations et suppressions d'emploi en France [Une étude de la période 1984-1992]," Économie et Prévision, Programme National Persée, vol. 113(2), pages 67-88.
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