IDEAS home Printed from https://ideas.repec.org/a/oup/indcch/v31y2022i6p1460-1493..html
   My bibliography  Save this article

Employment and innovation in recessions: firm-level evidence from European Countries
[The race between man and machine: implications of technology for growth, factor shares, and employment]

Author

Listed:
  • Bettina Peters
  • Berhnard Dachs
  • Martin Hud
  • Christian Köhler

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.

Suggested Citation

  • Bettina Peters & Berhnard Dachs & Martin Hud & Christian Köhler, 2022. "Employment and innovation in recessions: firm-level evidence from European Countries [The race between man and machine: implications of technology for growth, factor shares, and employment]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(6), pages 1460-1493.
    • Handle: RePEc:oup:indcch:v:31:y:2022:i:6:p:1460-1493.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/icc/dtac040
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agnes Kügler & Klaus Friesenbichler & Jürgen Janger, 2023. "Innovationen und Investitionen österreichischer Unternehmen in der Krise," WIFO Studies, WIFO, number 70681.
    2. Agnes Kügler & Nicole Schmidt-Padickakudy & Tim Slickers, 2023. "Ausgaben der Unternehmen für Produktneueinführungen 2022 gekürzt," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(6), pages 407-418, June.
    3. Kathrin Hofmann & Agnes Kügler & Nicole Schmidt-Padickakudy, 2024. "Unternehmensausgaben für neue Produkte dürften 2024 nur schwach wachsen," WIFO Monatsberichte (monthly reports), WIFO, vol. 97(4), pages 151-163, April.
    4. Wifo, 2023. "WIFO-Monatsberichte, Heft 6/2023," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(6), June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:indcch:v:31:y:2022:i:6:p:1460-1493.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/icc .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.