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The impact of innovation on employment: firm- and industry-level evidence from Estonia

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  • Jaanika Merikull

Abstract

This paper investigates the implication of innovation on employment at the firm and industry levels. The paper contributes to the literature in two respects. First, it proceeds from the data of a catch-up country undergoing a very rapid economic development. Most of the empirical investigations use data from developed and technologically leading countries. The second contribution concerns the nature of the data in use; we develop a unique database merging the data of the Estonian Commercial Register with two consecutive Estonian Community Innovation Surveys (CIS), the CISIII for 1998-2000 and CISIV for 2002-2004. Our results coincide with the results on developed economies in the respect that innovation activity has a positive effect on employment and that product innovation has a stronger and a more positive employment effect. Both of these effects are consistent over firm and industry levels. This result is also confirmed by the insignificance of the spillover effects of an industry's innovation on employment by firms

Suggested Citation

  • Jaanika Merikull, 2008. "The impact of innovation on employment: firm- and industry-level evidence from Estonia," Bank of Estonia Working Papers 2008-01, Bank of Estonia, revised 30 Oct 2008.
    • Handle: RePEc:eea:boewps:wp2008-1
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    References listed on IDEAS

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    Cited by:

    1. Sandra M. Leitner & Johannes Pöschl & Robert Stehrer, 2011. "Change Begets Change: Employment Effects of Technological and Non-Technological Innovations - a Comparison across Countries," wiiw Working Papers 72, The Vienna Institute for International Economic Studies, wiiw.
    2. Jaan Masso & Tõnu Roolaht & Urmas Varblane, 2010. "Foreign Direct Investment And Innovation In Central And Eastern Europe: Evidence From Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 67, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Angela Triguero & David Córcoles & Maria Cuerva, 2014. "Persistence of innovation and firm’s growth: evidence from a panel of SME and large Spanish manufacturing firms," Small Business Economics, Springer, vol. 43(4), pages 787-804, December.

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    More about this item

    Keywords

    innovation (technological change); employment; catch-up economy;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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