Journal of Evolutionary Economics

, Volume 3, Issue 2, pp 153–159 | Cite as

Employment growth and innovation at the firm level

An empirical study
  • Erik Brouwer
  • Alfred Kleinknecht
  • Jeroen O. N. Reijnen


We analyze the influence of innovation on growth rates of employment in 859 Dutch manufacturing firms over the period 1983–1988. Whereas the (growth of the) R&D intensity of firms has a slightly negative impact on employment, we find that firms with a high share of product-related R&D (as a proxi of R&D related to industrial activities in an early stage of the life cycle) experienced an above average growth of employment. The same holds for firms which directed their R&D towards information technology. Smaller firms have, ceteris paribus, substantially higher growth rates of employment than their larger counterparts. Against our expectations, R&D cooperation has no significant impact on employment growth. The same holds for activities in the fields of biotechnology and new materials.

Key words

Innovation Product-related R&D Employment growth Firm size Information technology 


O33 J23 C23 


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Copyright information

© Springer-Verlag 1993

Authors and Affiliations

  • Erik Brouwer
    • 1
  • Alfred Kleinknecht
    • 1
  • Jeroen O. N. Reijnen
    • 1
  1. 1.Foundation for Economic ResearchUniversity of AmsterdamAmsterdamThe Netherlands

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