Employment Effects of Different Innovation Activities: Microeconometric Evidence

44 Pages Posted: 15 Oct 2004 Last revised: 19 Feb 2015

See all articles by Bettina Peters

Bettina Peters

Center for European Economic Research (ZEW)

Date Written: 2004


Using the model recently developed by Jaumandreu (2003) this paper reports new results on the relationship between innovation and employment growth 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.

Keywords: Innovation, employment, applied econometrics, manufacturing, services

JEL Classification: O33, J23, C21, O32, L60

Suggested Citation

Peters, Bettina, Employment Effects of Different Innovation Activities: Microeconometric Evidence (2004). ZEW - Centre for European Economic Research Discussion Paper No. 04-073, Available at SSRN: https://ssrn.com/abstract=604481 or http://dx.doi.org/10.2139/ssrn.604481

Bettina Peters (Contact Author)

Center for European Economic Research (ZEW) ( email )

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