Employment Effects of Innovation at the Firm Level

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractUnderstanding whether technical change is beneficial or detrimental for employment is at the center of the policy debate, especially in phases of economic recession. So far, the effects of innovation -in its manifold declinations and intrinsic complexity -on labour demand have proven to be not unequivocal. This essay critically reviews the role of technical change in shaping employment dynamics at different levels of aggregation. Firstly, it disentangles theoretically the role of different compensation mechanisms through which employment adjusts after an innovation is introduced. Secondly, it critically presents the most recent empirical evidence on the topic, with a focus on methods and limitations. Finally, it provides an attempt to conceptualize a number of stylized facts and empirical regularities on the innovation-employment nexus.JEL classification: D21, J23, L10, O31, O33.

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“…The same authors provide similar findings in a study based on the same data, using static panel methods (Lachenmaier and Rottmann, ).…”

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confidence: 70%

The Innovation‐employment Nexus: A Critical Survey of Theory and Empirics

Calvino

Virgillito

2017

Journal of Economic Surveys

161

128

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“…He finds positive effects of product as well as process innovations on employment. Lachenmaier and Rottmann (2006) use a static panel approach and also find significantly positive effects for both types of innovation.…”

Section: Previous Empirical Literaturementioning

confidence: 90%

Effects of innovation on employment: A dynamic panel analysis

Lachenmaier

Rottmann

2011

International Journal of Industrial Organization

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264

146

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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.JEL Code: O30, L60, C23, J23.

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“…5 Specifically, positive effects are found by Smolny (1998), Lachenmaier and Rottmann (2006) and Becker and Egger (2007) for West German firms or Garcia et al (2002) for a set of Spanish firms. In contrast, Ross and Zimmermann (1993) in their study on German manufacturing firms point to the destructive effect of process innovations while Van Reenen (1997) for UK manufacturing firms, Rottmann and Ruschinski (1998) for West German firms or Hall, Lotti, and Mairesse (2008) for a panel of Italian firms find no significant effect of process innovations on firm-level employment.…”

Section: Endnotesmentioning

confidence: 98%

“…6 See, e.g., Van Reenen (1997), Smolny (1998), Rottmann and Ruschinski (1998), Lachenmaier and Rottmann (2006), Zimmermann (2008), Piva and Vivarelli (2005), Hall, Lotti, and Mairesse (2008) or Harrison et al (2014).…”

Section: Endnotesmentioning

confidence: 99%

Financing Constraints and Firm Growth in Emerging Europe

Leitner

2016

South East European Journal of Economics and Business

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Alarmingly, the burgeoning empirical literature on the causes and effects of financing constraints finds considerable and robust evidence that financing constraints severely affect firm behavior, obstruct firm performance and greatly curb firm growth. 1 Theoretically, the presence of financing constraints is ascribed to capital market imperfections such as non-negligible information asymmetries between entrepreneurs and uninformed outside investors. For instance, in the model of credit rationing developed by Stiglitz and Weiss (1981), imperfect information induces banks to resort to rationing credits instead of increasing the interest rate to maximize profits. Since the interest rate banks charge for credits also affects the riskiness of their pool of loans through an adverse selection effect and a negative incentive effect, higher interest rates would both attract riskier projects and induce debtors to realize projects with a generally lower probability of success but higher returns when successful. Hence, the on average higher riskiness of potential borrowers lowers overall profits for the banks and induces profit-maximizing banks to restrict the number of credits they grant.Empirically, a quickly growing body of literature finds strong evidence of financing constraints, but also stresses that the prevalence and extent of such constraints strongly depend on specific firm characteristics. For instance, due to insufficient collateral and resources, smaller firms are more financially constrained Sandra M. Leitner ABSTRACT The paper aims to shed light on the effects of different types of financing constraints on firm sales and employment growth in Emerging

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Employment Effects of Innovation at the Firm Level

Cited by 29 publications

References 11 publications

The Innovation‐employment Nexus: A Critical Survey of Theory and Empirics

The Innovation‐employment Nexus: A Critical Survey of Theory and Empirics

Effects of innovation on employment: A dynamic panel analysis

Financing Constraints and Firm Growth in Emerging Europe

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