Does innovation stimulate employment? Evidence from China France, Germany, and the Netherlands

Huang, Can and Hou, Jun and Licht, Georg and Mairesse, Jacques and Mulkay, Benoît and Mohnen, Pierre and Peters, Bettina and Wu, Yilin and Zhao, Yanyun and Zhen, Feng and UNSPECIFIED and UNSPECIFIED (2019) Does innovation stimulate employment? Evidence from China France, Germany, and the Netherlands. Industrial and Corporate Change, 28 (1). pp. 109-121. ISSN 0960-6491

Full content URL: https://doi.org/10.1093/icc/dty065

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Item Type:Article
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Abstract

This paper tests whether product and process innovations increase employment in three European countries – France, Germany and the Netherlands – and in the People’s Republic of China on the basis of the same underlying theoretical framework and comparable harmonized micro data. The data pertain to the period 2002-2004 and cover the manufacturing and services industries in the three European countries, and to the period 1999-2006 and only the manufacturing industries in China. Process innovation does not play a significant role whereas non-innovation related efficiency improvements in the production of unchanged products tend to reduce employment. In contrast, product innovation stimulates employment, the compensation effect via increased demand dominating the displacement effect. The net effect of product innovation and the net growth in total employment are comparable in the two regions.

Additional Information:The final published version of this article can be accessed online at http://icc.oxfordjournals.org/
Keywords:Product innovation, process innovation, employment
Subjects:L Social studies > L100 Economics
L Social studies > L113 Economic Policy
L Social studies > L110 Applied Economics
Divisions:Lincoln International Business School
ID Code:33385
Deposited On:18 Oct 2018 14:08

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