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Technological Innovation and Employment Reallocation
Author(s) -
Greenan Nathalie,
Guellec Dominique
Publication year - 2000
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/1467-9914.00146
Subject(s) - converse , technological change , job creation , sample (material) , labour economics , creative destruction , product innovation , product (mathematics) , business , economics , industrial organization , market economy , macroeconomics , chemistry , geometry , mathematics , chromatography
The paper describes the dynamics of employment at a firm and sector level in French industry and examines how far technological innovation can give account of it. We use a sample of 15,186 firms, over the period 1986–90. The two facts we want to explain at a firm and sector level are the net change in employment and the micro turmoil (transfers between competing firms). Innovating firms and sectors create jobs more than others over the medium run (5 years). Process innovation is more about job creation than product innovation at the firm level, but the converse is true at the sector level. This paradox is probably due to substitution effects (creative destruction).