Innovation and Employment in Patenting Firms: Empirical Evidence from Europe
29 Pages Posted: 4 Sep 2015
This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003-2012. The main outcome from the proposed GMM-SYS estimations is the labour-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services.
Keywords: technological change, innovation, patents, employment, GMM-SYS
JEL Classification: O31, O33
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