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Patenting Behaviour and Employment Growth in German Start-up Firms: A Panel Data Analysis


  • Niefert, Michaela


The effect of innovations on employment at the firm level is theoretically ambiguous. The present paper analyses this relationship using panel data on German start-up firms as well as German patent data. It employs different indicators of patenting activity. By applying fixed-effects and first-differencing panel data methods it is shown that patenting activity has a positive effect on employment growth that is typically most pronounced in the second year after application. The effect seems to diminish with firm age. Patenting firms do not generally exhibit higher growth rates than their non-patenting counterparts; instead, growth performance depends on their patenting activity over time.

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  • Niefert, Michaela, 2005. "Patenting Behaviour and Employment Growth in German Start-up Firms: A Panel Data Analysis," ZEW Discussion Papers 05-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:2894

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Alexander Coad & Rekha Rao, 2007. "The Employment Effects of Innovations in High-Tech Industries," Papers on Economics and Evolution 2007-05, Philipps University Marburg, Department of Geography.
    2. Coad, Alex & Rao, Rekha, 2008. "Innovation and firm growth in high-tech sectors: A quantile regression approach," Research Policy, Elsevier, vol. 37(4), pages 633-648, May.
    3. Alex Coad & Rekha Rao, 2011. "The firm-level employment effects of innovations in high-tech US manufacturing industries," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 255-283, May.
    4. Müller, Kathrin, 2009. "Employment growth in newly established firms: is there evidence for academic entrepreneur's human capital depreciation?," ZEW Discussion Papers 09-050, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Alex Coad & Rekha Rao, 2006. "Innovation and firm growth in "complex technology" sectors : a quantile regression approach," Cahiers de la Maison des Sciences Economiques r06050, Université Panthéon-Sorbonne (Paris 1).
    6. repec:kap:jinten:v:15:y:2017:i:2:d:10.1007_s10843-016-0195-7 is not listed on IDEAS
    7. repec:hal:journl:halshs-00118797 is not listed on IDEAS
    8. Fabienne Fortanier & Selwyn Moons, 2011. "Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects," De Economist, Springer, vol. 159(4), pages 511-531, December.

    More about this item


    employment growth; patents; Gibrat´s law; dynamic panel data models;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing


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