Effects of innovation on employment: A dynamic panel analysis

Stefan Lachenmaier, Horst Rottmann
2011 International Journal of Industrial Organization  
JEL classification: O30 L60 C23 J23 Keywords: Innovation Employment Panel data Dynamic panel methods 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 input and innovation output measures. Using dynamic panel GMM system estimation
more » ... e find positive effects of innovation on employment. This is true for innovation input as well as for innovation output variables. Innovations show their positive effect on employment with a time lag and process innovations have higher effects than product innovations.
doi:10.1016/j.ijindorg.2010.05.004 fatcat:n3hrm2y3qffljd7qgz34tnvgta