Product innovation and employment growth at the firm level: a quantile regression approach to inter-industry differences

ABSTRACT

This article demonstrates that the relationship between product innovativeness and employment growth at the firm level depends on (i) market responses to innovations with different degrees of novelty, (ii) the location of firms on the growth distribution and (iii) industry conditions. As a result, research that uses standard regression techniques such as OLS and does not account for innovation characteristics and industry differences fail to properly describe this relationship

KEYWORDS:

• Innovation
• growth
• quantile regressions
• manufacturing
• services
• Norway

JEL CLASSIFICATION:

• O12
• O31
• O33

Acknowledgments

The author gratefully acknowledges the support received from Tore Sandven during all stages of work with this paper. The usual disclaimers apply.

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

This article is based on empirical research originally conducted with funding from the Research Council of Norway under the project ‘Economic Development Paths in Norwegian Regions’ (Contract Number 209769/H20)