Creative and Science-Oriented Employees and Firm-Level Innovation

31 Pages Posted: 14 Feb 2018

See all articles by Antonia Birkeneder

Antonia Birkeneder

Kiel Institute for the World Economy

Stephan Brunow

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Date Written: February 2018

Abstract

This paper examines the link between innovation and the endowments of creative and science-oriented STEM - Science, Technology, Engineering and Mathematics - workers at the level of the firm and at the city-/regional-level in Germany. It also looks into whether the presence of these two groups of workers has greater benefits for larger cities than smaller locations, thus justifying policies to attract these workers in order to make German cities 'smarter'. The empirical analysis is based on a probit estimation, covering 115,000 firm-level observations between 1998 and 2015. The results highlight that firms that employ creative and STEM workers are more innovative than those that do not. However, the positive connection of creative workers to innovation is limited to the boundaries of the firm, whereas that of STEM workers is as associated to the generation of considerable innovation spillovers. Hence, attracting STEM workers is more likely to end up making German cities smarter than focusing exclusively on creative workers.

Keywords: Creative workers, Germany, Innovation, Smart Cities, Spillover, STEM workers

JEL Classification: J24, R23

Suggested Citation

Birkeneder, Antonia and Brunow, Stephan and Rodríguez-Pose, Andrés, Creative and Science-Oriented Employees and Firm-Level Innovation (February 2018). CEPR Discussion Paper No. DP12695, Available at SSRN: https://ssrn.com/abstract=3122357

Antonia Birkeneder (Contact Author)

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Stephan Brunow

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

HOME PAGE: http://www.iab.de

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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