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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 estimationdoi:10.1016/j.ijindorg.2010.05.004 fatcat:n3hrm2y3qffljd7qgz34tnvgta