Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data from Four European Countries / Rupert Harrison, Jordi Jaumandreu, Jacques Mairesse, Bettina Peters.

Format:

Book

Author/Creator:

Harrison, Rupert.

Contributor:

National Bureau of Economic Research.

Jaumandreu, Jordi.

Mairesse, Jacques.

Peters, Bettina.

Series:

Working Paper Series (National Bureau of Economic Research) no. w14216.

NBER working paper series no. w14216

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2008.

Summary:

This paper studies the impact of process and product innovations introduced by firms on employment growth in these firms. A simple model that relates employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products is developed and estimated using comparable firm-level data from France, Germany, Spain and the UK. Results show that displacement effects induced by productivity growth in the production of old products are large, while those associated with process innovations, which are likely to be compensated by price decreases, appear to be small. The effects related to product innovations are, however, strong enough to overcompensate these displacement effects.

Notes:

Print version record

August 2008.