Does innovation stimulate employment? Evidence from China, France, Germany, and The Netherlands

Jun Hou, Can Huang*, Georg Licht, Jacques Mairesse, Pierre Mohnen, Benoit Mulkay, Bettina Peters, Yilin Wu, Yanyun Zhao, Feng Zhen

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This article tests whether product and process innovations increase employment in three european countries—france, germany, and the netherlands—and in the people’s republic of china on the basis of the same underlying theoretical framework and comparable harmonized micro data. The data pertain to the period 2002–2004 and cover the manufacturing and services industries in the three european countries, and to the period 1999–2006 and only the manufacturing industries in china. Process innovation does not play a significant role, whereas non-innovation-related efficiency improvements in the production of unchanged products tend to reduce employment. In contrast, product innovation stimulates employment, the compensation effect via increased demand dominating the displacement effect. The net effect of product innovation and the net growth in total employment are comparable in the two regions.
Original languageEnglish
Pages (from-to)109-121
Number of pages13
JournalIndustrial and Corporate Change
Volume28
Issue number1
DOIs
Publication statusPublished - Feb 2019

Keywords

  • PRODUCTIVITY
  • GROWTH

Cite this

Hou, Jun ; Huang, Can ; Licht, Georg ; Mairesse, Jacques ; Mohnen, Pierre ; Mulkay, Benoit ; Peters, Bettina ; Wu, Yilin ; Zhao, Yanyun ; Zhen, Feng. / Does innovation stimulate employment? Evidence from China, France, Germany, and The Netherlands. In: Industrial and Corporate Change. 2019 ; Vol. 28, No. 1. pp. 109-121.
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title = "Does innovation stimulate employment? Evidence from China, France, Germany, and The Netherlands",
abstract = "This article tests whether product and process innovations increase employment in three european countries—france, germany, and the netherlands—and in the people’s republic of china on the basis of the same underlying theoretical framework and comparable harmonized micro data. The data pertain to the period 2002–2004 and cover the manufacturing and services industries in the three european countries, and to the period 1999–2006 and only the manufacturing industries in china. Process innovation does not play a significant role, whereas non-innovation-related efficiency improvements in the production of unchanged products tend to reduce employment. In contrast, product innovation stimulates employment, the compensation effect via increased demand dominating the displacement effect. The net effect of product innovation and the net growth in total employment are comparable in the two regions.",
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author = "Jun Hou and Can Huang and Georg Licht and Jacques Mairesse and Pierre Mohnen and Benoit Mulkay and Bettina Peters and Yilin Wu and Yanyun Zhao and Feng Zhen",
note = "Data source : Community Innovation Survey and annual industrial surveys from the China National Bureau of Statistics",
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Does innovation stimulate employment? Evidence from China, France, Germany, and The Netherlands. / Hou, Jun; Huang, Can; Licht, Georg; Mairesse, Jacques; Mohnen, Pierre; Mulkay, Benoit; Peters, Bettina; Wu, Yilin; Zhao, Yanyun; Zhen, Feng.

In: Industrial and Corporate Change, Vol. 28, No. 1, 02.2019, p. 109-121.

Research output: Contribution to journalArticleAcademicpeer-review

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AU - Hou, Jun

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AU - Licht, Georg

AU - Mairesse, Jacques

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AU - Peters, Bettina

AU - Wu, Yilin

AU - Zhao, Yanyun

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AB - This article tests whether product and process innovations increase employment in three european countries—france, germany, and the netherlands—and in the people’s republic of china on the basis of the same underlying theoretical framework and comparable harmonized micro data. The data pertain to the period 2002–2004 and cover the manufacturing and services industries in the three european countries, and to the period 1999–2006 and only the manufacturing industries in china. Process innovation does not play a significant role, whereas non-innovation-related efficiency improvements in the production of unchanged products tend to reduce employment. In contrast, product innovation stimulates employment, the compensation effect via increased demand dominating the displacement effect. The net effect of product innovation and the net growth in total employment are comparable in the two regions.

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