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Eurasian Business Review

, Volume 6, Issue 2, pp 189–213 | Cite as

Innovation and job creation: a sustainable relation?

  • Daria Ciriaci
  • Pietro Moncada-Paternò-Castello
  • Peter Voigt
Original Paper

Abstract

This study compared the employment growth patterns of innovative and non-innovative firms, focusing on whether or not there are systematic differences between these two categories in the persistence of the jobs they create. To this end, a unique longitudinal dataset of 3304 Spanish firms over the period 2002–2009 and a semi-parametric quantile regression approach was used. The empirical results indicate that, ceteris paribus, innovative, smaller and younger firms are more likely to experience high employment growth episodes than non-innovative firms. More interestingly, among those firms that contribute more to yearly job creation (e.g. high-growth firms), only innovative companies are able to sustain high growth over time (in contrast to non-innovative firms). In addition, among declining firms, non-innovators tend to deteriorate faster in terms of economic performance than innovators.

Keywords

Serial correlation Quantile regression Firm size Firm’s age Job creation; ‘young innovative companies’ (YICs) 

JEL Classification

L11 L25 

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Copyright information

© European Union 2015

Authors and Affiliations

  • Daria Ciriaci
    • 1
  • Pietro Moncada-Paternò-Castello
    • 2
  • Peter Voigt
    • 1
  1. 1.European Commission, Directorate-General for Economic and Financial AffairsBrusselsBelgium
  2. 2.European Commission, Joint Research CentreSevilleSpain

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