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Employment Creation in Small Technological and Design Innovators in the U.K. during the 1980s


  • Tether, B S
  • Massini, S


This paper provides rare empirical evidence on employment creation by innovative small firms in the United Kingdom over the eleven years between 1980 and 1991. Drawing on a database of firms which were recognised as having introduced important innovations, the paper examines the extent of employment growth in these companies and compares their growth with that discovered by other studies of small firms in the United Kingdom. This shows that the innovative firms have grown at a significantly faster average rate than small firms generally. Some of the factors associated with employment change in small firms are assessed. This shows that the initial size, age, sector of activity and type of innovation introduced by the firms were all associated with differences in their average rate of growth. The employment created was, however, highly concentrated in a few firms, but even the fastest growing of these companies (directly) created hundreds rather than thousands of new jobs over the period of analysis. Copyright 1998 by Kluwer Academic Publishers

Suggested Citation

  • Tether, B S & Massini, S, 1998. "Employment Creation in Small Technological and Design Innovators in the U.K. during the 1980s," Small Business Economics, Springer, vol. 11(4), pages 353-370, December.
  • Handle: RePEc:kap:sbusec:v:11:y:1998:i:4:p:353-70

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    Cited by:

    1. Marco Corsino, 2008. "Product Innovation and Growth: The Case of Integrated Circuits," ROCK Working Papers 047, Department of Computer and Management Sciences, University of Trento, Italy, revised 23 Jun 2008.
    2. Aeron, Prageet & Jain, Rekha, 2011. "Opportunity Recognition in High Tech and Regulatory Environment: A study of product based Indian Telecom start-ups," IIMA Working Papers WP2011-02-09, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Del Monte, Alfredo & Papagni, Erasmo, 2003. "R&D and the growth of firms: empirical analysis of a panel of Italian firms," Research Policy, Elsevier, vol. 32(6), pages 1003-1014, June.
    4. Afshin Rahnama & Seyyed Javad Mousavian & Dariush Eshghi & Abbas Alaei, 2011. "The Role of Industrial Incentives in Development of Small and Medium Industries," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(4), pages 25-32, November.
    5. Crass, Dirk & Schwiebacher, Franz, 2013. "Do trademarks diminish the substitutability of products in innovative knowledge-intensive services?," ZEW Discussion Papers 13-061, ZEW - Leibniz Centre for European Economic Research.
    6. Aeron, Prageet & Jain, Rekha, 2011. "Identification of Marketing Capabilities: A study on Indian product based B2B Telecom start-ups," IIMA Working Papers WP2011-02-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    7. Francisco Escribano Sotos & Isabel Pardo GarcĂ­a, 2012. "Long-term care, dependence and the third sector," Small Business Economics, Springer, vol. 38(3), pages 321-331, April.
    8. Aldieri, Luigi & Garofalo, Antonio & Vinci, Concetto Paolo, 2015. "R&D Spillovers and Employment: A Micro-econometric Analysis," MPRA Paper 67269, University Library of Munich, Germany.

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