Effects of Innovation on Employment: A Dynamic Panel Analysis

31 Pages Posted: 22 Jun 2007

See all articles by Stefan Lachenmaier

Stefan Lachenmaier

Ifo Institute for Economic Research

Horst Rottmann

University of Applied Sciences Amberg-Weiden; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: June 2007

Abstract

This paper estimates the effect of innovation on employment at the firm level. Our uniquely long innovation panel data set of German manufacturing firms covers more than 20 years and allows us to use various innovation measures. We can distinguish between product and process innovations as well as between innovation inputs and innovation outputs. Using dynamic panel GMM system estimation we find positive effects of innovation on employment. This result is robust to the use of product and process innovations as well as for innovation input and output.

Keywords: innovation, employment, panel data, dynamic panel methods

JEL Classification: O30, L60, C23, J23

Suggested Citation

Lachenmaier, Stefan and Rottmann, Horst, Effects of Innovation on Employment: A Dynamic Panel Analysis (June 2007). CESifo Working Paper No. 2015. Available at SSRN: https://ssrn.com/abstract=994809

Stefan Lachenmaier

Ifo Institute for Economic Research ( email )

81679 Munich
Germany

Horst Rottmann (Contact Author)

University of Applied Sciences Amberg-Weiden ( email )

Hetzenrichter Weg 15
D-92637 Weiden i.d. Opf
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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