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Innovation and Job Creation in a Small Open Economy Evidence from Norwegian Manufacturing Plants 1982-92

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Abstract

It is often claimed that the opportunities to create new manufacturing jobs in open, high-cost economies such as Norway, are concentrated in products which are technologically advanced and knowledge intensive. This paper examines the relationship between job creation and innovation, as measured by R&D investments, in Norwegian manufacturing. We compare job creation in plants belonging to R&D firms to plants belonging to firms without R&D. We also compare job creation in plants belonging to high and low tech industries. Our data set covers more than 80 percent of manufacturing employment in Norway over the period 1982-92. The paper challenges the optimistic view about job creation in R&D intensive firms and high-tech industries. Some main findings are: (i) Net job creation is not higher in high-tech industries. (ii) There is no clear-cut positive relationship between net job creation and the R&D-intensity of the firm. (iii) There is less net job creation and less job-security in R&D-intensive firms in the late 1980s and early 1990s.

Suggested Citation

  • Tor Jakob Klette & Svein Erik Førre, 1995. "Innovation and Job Creation in a Small Open Economy Evidence from Norwegian Manufacturing Plants 1982-92," Discussion Papers 159, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:159
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    Cited by:

    1. Van Roy, Vincent & Vertesy, Daniel & Vivarelli, Marco, 2015. "Innovation and Employment in Patenting Firms: Empirical Evidence from Europe," IZA Discussion Papers 9147, Institute for the Study of Labor (IZA).
    2. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: A firm-level analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1176, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    4. L. Aldieri & C. P. Vinci, 2018. "Innovation effects on employment in high-tech and low-tech industries: evidence from large international firms within the triad," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(2), pages 229-243, June.
    5. Mario Coccia, 2001. "Partnerships Technology Transfer-Based: Theory and Methodology for Analysing the Process," CERIS Working Paper 200109, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    6. Fung, Michael K., 2006. "Are labor-saving technologies lowering employment in the banking industry?," Journal of Banking & Finance, Elsevier, vol. 30(1), pages 179-198, January.
    7. Marisa Cesario & Maria Teresa Noronha Vaz, 2011. "Technological adjustments in textile, clothes and leather industries: an alternative pathway for competitiveness," ERSA conference papers ersa10p85, European Regional Science Association.
    8. Stefan Lachenmaier & Horst Rottmann, 2006. "Employment Effects of Innovation at the Firm Level," ifo Working Paper Series 27, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    9. Harrison, Rupert & Jaumandreu, Jordi & Mairesse, Jacques & Peters, Bettina, 2014. "Does innovation stimulate employment? A firm-level analysis using comparable micro-data from four European countries," International Journal of Industrial Organization, Elsevier, vol. 35(C), pages 29-43.
    10. Maliranta, Mika, 2001. "Productivity Growth and Micro-level Restructuring. Finnish experiences during the turbulent decades," Discussion Papers 757, The Research Institute of the Finnish Economy.
    11. Lachenmaier Stefan & Rottmann Horst, 2007. "Employment Effects of Innovation at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 227(3), pages 254-272, June.
    12. Koski, Heli, 2008. "Public R&D Subsidies and Employment Growth - Microeconomic Evidence from Finnish Firms," Discussion Papers 1143, The Research Institute of the Finnish Economy.
    13. Jung, Sungmoon & Lee, Jeong-Dong & Hwang, Won-Sik & Yeo, Yeongjun, 2017. "Growth versus equity: A CGE analysis for effects of factor-biased technical progress on economic growth and employment," Economic Modelling, Elsevier, vol. 60(C), pages 424-438.
    14. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2014. "Technology and employment: the job creation effect of business R&D," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 126(3), pages 239-264.
    15. Marisa Cesário & Maria Teresa de Noronha Vaz, 2012. "Technological adjustments in the textile, clothes and leather industries: an alternative pathway for competitiveness," Chapters,in: Entrepreneurship, Social Capital and Governance, chapter 14, pages 325-357 Edward Elgar Publishing.
    16. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2011. "R&D and Employment: Some Evidence from European Microdata," IZA Discussion Papers 5908, Institute for the Study of Labor (IZA).
    17. Chih-Hai YANG & Chun-Hung A. LIN, 2008. "Developing Employment Effects Of Innovations: Microeconometric Evidence From Taiwan," The Developing Economies, Institute of Developing Economies, vol. 46(2), pages 109-134.
    18. Marina Di Giacomo, 2000. "The Employment Effects of Innovation. Evidence from a Sample of Italian Manufacturing Firms," CERIS Working Paper 200009, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    19. Martin Falk, 2012. "Quantile estimates of the impact of R&D intensity on firm performance," Small Business Economics, Springer, vol. 39(1), pages 19-37, July.
    20. Di Cintio, Marco & Ghosh, Sucharita & Grassi, Emanuele, 2017. "Firm growth, R&D expenditures and exports: An empirical analysis of italian SMEs," Research Policy, Elsevier, vol. 46(4), pages 836-852.

    More about this item

    Keywords

    R&D; innovation; job creation; job destruction.;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • 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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