The composition of employment in new innovative firms

Abstract

Purpose – The paper explores the composition of employment in new innovative firms. The purpose of this paper is to shed some light on the mixture of job positions at the firm level measured by employees’ occupational position, their qualification and specialisation, as well as their origin. As there is little known about the structure and quality of employment in new firms, insights are helpful for policymakers who are engaged in regional development and job creation. Design/methodology/approach – The database used for analysis comes from an interdisciplinary study on human-related success factors of business start-ups in the German state of Thuringia. Data were collected by means of 399 face-to-face interviews with the sole founder or the leading entrepreneur of a start-up firm. The findings are based on a multivariate data analysis using regression models. Findings – The results indicate that temporary employment is more likely inherent in fast growing firms. Academic spin-offs prefer to hire people with a university education and scientific background. Furthermore, it is found that manufacturing firms have a relatively higher demand for staff with a professional education as well as a technical background. However, there is no support for the thesis that innovative firms contribute to combating structural unemployment at least in the short run. Research limitations/implications – Results are limited to a particular geographical region. Researchers are strongly encouraged to conduct further research on the topic. Practical implications – The paper includes implications for policymakers in the field of unemployment reduction and employment creation. Originality/value – The paper explores the link between innovation and the quality of employment in new business ventures. This approach is in contrast to the bulk of other studies dealing with new employment generation in terms of numbers.

Impact of business innovation on future employment in Nigeria

“…Prior studies such as Mbuyisa and Leonard (2017), Bogliacino and Pianta (2009), Wadho et al (2019), Olurinola et al (2021), Karakara and Osabuohien (2020), Matthew et al (2020), Lautenschläger (2015), Zhu et al (2021) and Aloisi and De Stefano (2020) have taken into consideration the importance of innovation to drive firm's growth as job creation or employment. According to Mbuyisa and Leonard (2017), innovation brings various opportunities for entrepreneurs to improve their business outcomes, attain growth, retain profitability and contribute to employment creation.…”

“…In another study, Emera (2021) found that innovation shocks negatively affect a firm's employment capacity. On the contrary, Lautenschläger (2015) found no evidence that innovative firms contribute to combating structural unemployment, at least in the short‐run. Bhattacharyya and Mitra (2020) found inadequate extensive evidence on the impact of innovation on total factor productivity growth.…”

Access To Finance – Innovation Relationship In Post-Transition

“…Other studies emphasize that innovation potential in an enterprise could be additionally supported by the higher educational attainment of the labor force. R&D performing firms and especially academic spin-offs are more prone toward hiring employees with university degrees in comparison to employees with professional education [33]. Related to the access to finance perceptions, higher education of the employees could be related to the better understanding of the financing application procedures [31].…”