Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Sverre J. Herstad
Innovation and corporate employment growth revisited
() and Tore Sandven
Abstract: Using Norwegian Community Innovation Survey (CIS) data
linked to public employment registers covering the years 2004 - 2010, this
paper investigates the relationship between employment growth prior to the
event of innovation, innovation output, and growth performance after the
event. Positive growth ex ante generally strengthens growth ex post.
Moreover, it increases the likelihood that innovations are introduced
during the intermediate period that strengthen employment performances
further. This effect is present for all levels of growth only when new
products, production processes and support functions are introduced in
tandem. Standalone improvements of products, by contrast, influence only
the probability of survival, whereas standalone improvements of production
processes and support functions support ex post growth specifically in the
upper tail of the distribution. Our findings challenge the common view that
product innovations are more important to growth than process innovations,
and reveal interdependencies between multi-faceted organizational
capabilities, innovation output and employment performance.
Keywords: Capabilities; innovation; employment growth; Norway; (follow links to similar papers)
JEL-Codes: J23; J24; O15; O33; (follow links to similar papers)
33 pages, February 8, 2015
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