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Creative and science-oriented employees and firm-level innovation

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  • Brunow, Stephan
  • Birkeneder, Antonia
  • Rodríguez-Pose, Andrés

Abstract

This paper examines the link between innovation and the endowments of creative and science-oriented STEM – Science, Technology, Engineering and Mathematics – workers at the level of the firm and at the city-/regional-level in Germany. It also looks into whether the presence of these two groups of workers has greater benefits for larger cities than smaller locations, thus justifying policies to attract these workers in order to make German cities ‘smarter’. The empirical analysis is based on a probit estimation, covering 115,000 firm-level observations between 1998 and 2015. The results highlight that firms that employ creative and STEM workers are more innovative than those that do not. However, the positive connection of creative workers to innovation is limited to the boundaries of the firm, whereas that of STEM workers is as associated to the generation of considerable innovation spillovers. Hence, attracting STEM workers is more likely to end up making German cities smarter than focusing exclusively on creative workers.

Suggested Citation

  • Brunow, Stephan & Birkeneder, Antonia & Rodríguez-Pose, Andrés, 2018. "Creative and science-oriented employees and firm-level innovation," LSE Research Online Documents on Economics 87588, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:87588
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    Cited by:

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    2. Podobnik, Boris & Dabić, Marina & Wild, Dorian & Di Matteo, Tiziana, 2023. "The impact of STEM on the growth of wealth at varying scales, ranging from individuals to firms and countries: The performance of STEM firms during the pandemic across different markets," Technology in Society, Elsevier, vol. 72(C).
    3. Rodríguez-Pose, Andrés & Lee, Neil, 2020. "Hipsters vs. geeks? Creative workers, STEM and innovation in US cities," LSE Research Online Documents on Economics 103974, London School of Economics and Political Science, LSE Library.
    4. Lehnert, Patrick & Pfister, Curdin & Backes-Gellner, Uschi, 2020. "Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland," Labour Economics, Elsevier, vol. 66(C).
    5. Oleg Mariev & Karina Nagieva & Andrey Pushkarev & Natalia Davidson & Kazi Sohag, 2022. "Effects of R&D spending on productivity of the Russian firms: does technological intensity matter?," Empirical Economics, Springer, vol. 62(5), pages 2619-2643, May.
    6. Andrés Camacho, 2020. "The role of science-oriented workers on innovation: the case of the accommodation industry in Colombia," Documentos de Trabajo UEC 19547, Universidad Externado de Colombia.
    7. Annie Tubadji & Thomas Colwill & Don Webber, 2021. "Voting with your feet or voting for Brexit: The tale of those stuck behind," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(2), pages 247-277, April.

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    More about this item

    Keywords

    innovation; creative workers; STEM workers; smart cities; spillovers; Germany;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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