Innovation, creative destruction and structural change : firm-level evidence from European Countries


Dachs, Bernhard ; Hud, Martin ; Köhler, Christian ; Peters, Bettina


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URL: https://ub-madoc.bib.uni-mannheim.de/41590
URN: urn:nbn:de:bsz:180-madoc-415902
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: ZEW Discussion Papers
Volume: 16-077
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O33 , J23 , C26 , D2,
Keywords (English): Innovation , employment , reallocation , technology intensity , compensation effect , displacement effect , cannibalisation effect
Abstract: The shift of employment from lower to higher productive firms is an important driver for structural change and industry dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by product innovation may be offset by employment losses in related products, known as ‘cannibalisation’ or ‘business stealing’ effects in the literature, by employment losses from process and organisational innovation and by general productivity increases. The paper investigates this effect empirically with a large dataset from the European Community Innovation Survey (CIS). We find that employment gains and losses increase with technology intensity of the sector. High-technology manufacturing shows the strongest employment gains and losses from innovation, followed by knowledge-intensive services, low-technology manufacturing and less knowledge-intensive services. The net contribution of innovation to employment growth is mostly positive, an exception being manufacturing industries in recession periods.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Dachs, Bernhard ; Hud, Martin ; Köhler, Christian ; Peters, Bettina (2016) Innovation, creative destruction and structural change : firm-level evidence from European Countries. Open Access ZEW Discussion Papers Mannheim 16-077 [Working paper]
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