1. Does Innovation stimulate employment? A firm-level analysis using comparable micro data from four European countries Harrison-Jaumandreu-Mairesse-Peters Comment by Walter Garcia-Fontes

2. Useful paper: Effect of product and process innovation on employment at the firm level Main results: Product innovation increases employment (demand effect) Process innovations reduces employment (except for Spain) but partly compensated by lower prices and increased demand France, Germany, Spain and the UK Spain : 1998-2000 period of high employement growth (old products) In services no significant effects of process innovation

3. Equations to be estimated: based on employment equation from cost minimization Employment growth -efficiency gain in production of old products Growth of old products Relative efficiency Growth of new products Substitute nominal sales for real production Assume product and process innovation affect  and  Justification of the empirical part

4. Strong separability of new and old products In the production function With regard to the effect of product and process innovation on the efficiency in the production of old and new products How important is it for identification? Assumptions

5. Data quality (I) 2 year span for effects on employment of product and process technologies Is it enough to assess employment effects?

6. Data quality (II) Different types of deflators used for different countries 3-digit and 4-digit level Not sensitive enough for some industries: employement effects may be underestimated

7. Effects of business cycle? Spain: 5,8 % Increase in aggregate employment: France: 2,6% Germany: 1,7% UK: 0,9% Interpretation of the results (I) Sample of non-innovating firms: impediments for introducing innovation?

8. Interpretation of results (II) Market power: important for price reductions and effects of process innovation Not used too much while commenting the results What about matching with other sources? Other questions in the survey?