Journal
INDUSTRIAL AND CORPORATE CHANGE
Volume 28, Issue 1, Pages 177-202Publisher
OXFORD UNIV PRESS
DOI: 10.1093/icc/dty003
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Funding
- European Union Horizon 2020 research and innovation program [649186-ISIGrowth]
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This work studies the firm-level relationship between different types of innovative activities and employment growth rates. Improving on previous investigations on the topic, it combines a detailed analysis of the effects of product and process innovation on average employment growth with a broader outlook on the whole conditional employment growth distribution. Results show that product innovationespecially in terms of good new to the entire markethas a positive effect on employment growth. This role is likely to be particularly relevant for both fast-growing and shrinking firms. Process innovation appears instead to have less clear-cut dynamics, consistently with existing evidence. Among different types of process innovation, the introduction of novel auxiliary processes appears to be more positively linked with employment growth.
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