Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24697
Authors: 
Peters, Bettina
Year of Publication: 
2005
Series/Report no.: 
ZEW Discussion Papers 04-73 [rev.]
Abstract: 
Extending a recently developed multi-product model and distinguishing between different product and process innovation activities, this paper reports new results on the relationship between innovation and employment growth in manufacturing and service firms in Germany. The model is tailor-made for analysing firm-level employment effects of innovations using specific information provided by CIS data. It establishes a theoretical link between employment growth and innovation output. The econometric analysis confirms that product innovations have a positive impact on employment. In contrast to previous studies, this effect is independent of the novelty degree. Moreover, different employment effects between manufacturing and service firms regarding process innovations were found. Finally, from a cross country perspective the results for Germany are similar to those found for Spain and the UK.
Subjects: 
Innovation
employment
applied econometrics
manufacturing
services
JEL: 
O32
L60
L80
O33
C21
J23
Document Type: 
Working Paper

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