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Patenting Behavior and Employment Growth in German Start-Up Firms

In: Entrepreneurship in the Region

Author

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  • Michaela Niefert

Abstract

Innovation is universally regarded as a major source of economic growth. Correspondingly, innovation activities of firms are generally supposed to have a positive effect on firm performance. Product innovations increase demand; process innovations reduce marginal production costs. As a consequence, firms are able to conquer market shares at the expense of other firms and enhance their competitiveness. However, the time span of a competitive advantage is very short in highly competitive markets and continuous innovations are necessary to maintain a leading position. The positive relationship between innovation activities and economic performance is empirically less established at the firm level than at the macro-level.

Suggested Citation

  • Michaela Niefert, 2006. "Patenting Behavior and Employment Growth in German Start-Up Firms," International Studies in Entrepreneurship, in: Michael Fritsch & Juergen Schmude (ed.), Entrepreneurship in the Region, chapter 7, pages 113-142, Springer.
    • Handle: RePEc:spr:inschp:978-0-387-28376-0_7
    DOI: 10.1007/0-387-28376-5_7
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