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Does innovation stimulate employment? Evidence from China, France, Germany, and The Netherlands

Author

Listed:
  • Jun Hou

    (University of Lincoln, Lincoln, United Kingdom)

  • Can Huang

    (Zhejiang University)

  • Georg Licht

    (Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim)

  • Jacques Mairesse

    (ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique - Ecole Nationale de la Statistique et de l'Analyse Economique)

  • Pierre Mohnen

    (UNU-MERIT - UNU-MERIT - United Nations University - Maastricht University)

  • Benoît Mulkay

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)

  • Bettina Peters

    (Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim)

  • Yilin Wu

    (Renming University of China)

  • Yanyun Zhao

    (Renming University of China)

  • Feng Zhen

    (Renming University of China)

Abstract

This article tests whether product and process innovations increase employment in three European countries-France, Germany, and The Netherlands-and in the People's Republic of China on the basis of the same underlying theoretical framework and comparable harmonized micro data. The data pertain to the period 2002-2004 and cover the manufacturing and services industries in the three European countries, and to the period 1999-2006 and only the manufacturing industries in China. Process innovation does not play a significant role, whereas non-innovation-related efficiency improvements in the production of unchanged products tend to reduce employment. In contrast, product innovation stimulates employment, the compensation effect via increased demand dominating the displacement effect. The net effect of product innovation and the net growth in total employment are comparable in the two regions.

Suggested Citation

  • Jun Hou & Can Huang & Georg Licht & Jacques Mairesse & Pierre Mohnen & Benoît Mulkay & Bettina Peters & Yilin Wu & Yanyun Zhao & Feng Zhen, 2019. "Does innovation stimulate employment? Evidence from China, France, Germany, and The Netherlands," Post-Print hal-03511759, HAL.
    • Handle: RePEc:hal:journl:hal-03511759
    DOI: 10.1093/icc/dty065
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    Cited by:

    1. Avom, Désiré & Dadegnon, Aimé Kocou & Igue, Charlemagne Babatoundé, 2021. "Does digitalization promote net job creation? Empirical evidence from WAEMU countries," Telecommunications Policy, Elsevier, vol. 45(8).
    2. Dosi, G. & Piva, M. & Virgillito, M.E. & Vivarelli, M., 2021. "Embodied and disembodied technological change: The sectoral patterns of job-creation and job-destruction," Research Policy, Elsevier, vol. 50(4).
    3. Juthathip Jongwanich & Archanun Kohpaiboon & Ayako Obashi, 2020. "Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing," Working Papers DP-2020-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Paola Azar, 2020. "Politics as a determinant of primary school provision The case of Uruguay, 1914-1954," Documentos de Trabajo (working papers) 20-07, Instituto de Economía - IECON.
    5. Carlos Bianchi & Hugo Laguna, 2020. "Firm’s innovation strategies and employment: new evidence from Uruguay," Documentos de Trabajo (working papers) 20-06, Instituto de Economía - IECON.
    6. Destefanis, Sergio & Rehman, Naqeeb Ur, 2023. "Investment, innovation activities and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 474-490.
    7. Juthathip Jongwanich & Archanun Kohpaiboon & Ayako Obashi, 2020. "Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing," Working Papers ERIA-DP-2020-09, Economic Research Institute for ASEAN and East Asia (ERIA).

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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