Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322463 
Year of Publication: 
2025
Series/Report no.: 
UCD Centre for Economic Research Working Paper Series No. WP25/14
Publisher: 
University College Dublin, UCD School of Economics, Dublin
Abstract: 
There is a long-standing recognition that innovating firms often have higher employment growth. More recently, there is increasing understanding that innovation is concentrated among a small number of generally large firms. We contribute to this debate by showing that the innovation-employment link for a firm is dependent on its multinational status. While we find that more innovative firms are also faster growing ones - even after accounting for size - there is an even greater effect from innovation for multinationals. While we do find evidence suggesting that such firms benefit from innovation done by other affiliates of the same parent, we nonetheless find that they benefit more from their own innovation as well. Thus, this points to important features of multinationals such as integrated global supply chains that are key to understanding the relationship between innovation and employment.
Subjects: 
Knowledge Spillovers
Employment
Innovation
Technological Diversification
JEL: 
J21
J24
O31
O33
Document Type: 
Working Paper

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