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Flavio Calvino, Technological innovation and the distribution of employment growth: a firm-level analysis, Industrial and Corporate Change, Volume 28, Issue 1, February 2019, Pages 177–202, https://doi.org/10.1093/icc/dty003
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Abstract
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 innovation—especially in terms of good new to the entire market—has 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.