Employment , innovation , foreign ownership , community innovation survey , host country effects
Abstract:
This paper examines how foreign-owned and domestically owned firms transform innovation
into employment growth. The empirical analysis, based on the model of Harrison,
Jaumandreu, Mairesse and Peters (2008) and CIS data for 16 countries, reveals important
differences between the two groups: Due to general productivity increases and process
innovation, foreign-owned firms experience higher job losses than domestically owned firms.
At the same time, employment- creating effects of product innovation are larger for foreignowned
firms. Together with employment-stimulating effects stemming from existing
products, they overcompensate the negative displacement effects resulting in net employment
growth in foreign-owned firms. However, net employment growth turns out to be smaller in
foreign-owned firms than in domestically owned firms.
Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.
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