Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72469
Authors: 
Dachs, Bernhard
Peters, Bettina
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Paper 13-019
Abstract: 
This paper examines how foreign-owned and domestically owned firms transform innovation into employment growth. The empirical analysis, based on the model of Harrison, Jaumandreu, Mairesse and Peters (2008) and CIS data for 16 countries, reveals important differences between the two groups: Due to general productivity increases and process innovation, foreign-owned firms experience higher job losses than domestically owned firms. At the same time, employment- creating effects of product innovation are larger for foreignowned firms. Together with employment-stimulating effects stemming from existing products, they overcompensate the negative displacement effects resulting in net employment growth in foreign-owned firms. However, net employment growth turns out to be smaller in foreign-owned firms than in domestically owned firms.
Subjects: 
employment
innovation
foreign ownership
Community Innovation Survey
host country effects
JEL: 
O31
O33
F23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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