ILO Research department seminar

Does innovation contribute to employment growth? Firm-level evidence from EU countries

Iulia Siedschlag - Trinity College Dublin, Chair: Markus Pilgrim - Enterprises

“It is widely recognised that in the context of increased global interdependences innovation is a major driver of sustainable enterprise growth in the long-term. While the international evidence uncovers a positive link between innovation and productivity growth, existing evidence on the effects of innovation on employment growth is less conclusive. Firm-level innovations impact on employment through several channels and their net effects on employment growth depend on the innovation type and on which channel dominates. We discuss recent empirical evidence on the effects of product, process and organisational innovations on employment growth in European Union countries. The empirical analysis is based on a multi-product model and uses data from the Community Innovation Surveys. On the basis of this evidence, we suggest implications for the design of sustainable and inclusive economic growth strategies.“