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Employment and innovation in recessions: firm-level evidence from European Countries.
- Source :
- Industrial & Corporate Change; Dec2022, Vol. 31 Issue 6, p1460-1493, 34p, 15 Charts, 4 Graphs
- Publication Year :
- 2022
-
Abstract
- This paper investigates the employment effects of innovation over the business cycle with a large data set of manufacturing firms from 26 European countries from 1998 to 2014. The paper reveals four important findings: First, the net employment effect of product innovation is pro-cyclical and positive except in recessions. Second, product innovators are more resilient in recessions than non-product innovators because they are able to substitute demand losses in old products with new products. As a result, the net employment losses of product innovators are significantly lower in recessions than those of non-product innovators. Third, we find resilience only among small and medium-sized enterprises (SMEs), but not among large firms. Fourth, process and organizational innovations displace labor primarily during upturn and downturn periods. [ABSTRACT FROM AUTHOR]
- Subjects :
- TECHNOLOGICAL innovations
BUSINESS cycles
RECESSIONS
SMALL business
NET losses
Subjects
Details
- Language :
- English
- ISSN :
- 09606491
- Volume :
- 31
- Issue :
- 6
- Database :
- Complementary Index
- Journal :
- Industrial & Corporate Change
- Publication Type :
- Academic Journal
- Accession number :
- 160302113
- Full Text :
- https://doi.org/10.1093/icc/dtac040