Innovation, employment growth, and foreign ownership of firms: A European perspective

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 13-019

Classification and Topics

• Classification: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Technological Change: Choices and Consequences; Diffusion Processes ; Multinational Firms; International Business
• Subject: employment ; innovation ; foreign ownership ; Community Innovation Survey ; host country effects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dachs, Bernhard ; Peters, Bettina
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/72469
• URN: urn:nbn:de:bsz:180-madoc-332957
• Last update: 10.03.2025, 11:42 AM CET