Industrial Employment Growth in Spanish Regions - the Role Played by Size, Innovation, and Spatial Aspects

innovateur areas and have a higher employment growth. The other three regions included in
upper right hand side of Figure 11 belong to innovative large firm areas.

Figure 11.- Relative Employment Growth versus Share of High and Medium-High
Technological Industries on Employment.

Relative Employment Growth

Ten regions reject the assumption of a positive relationship between innovation activity and
regional industrial employment growth, since they are located in a line that cross Figure 11
from upper left hand side to lower right hand area.

3. Analysis of the Influence of Size, Innovation, and Regional variables on
Industrial Employment Evolution. Microdata level.

As it was said at the Introduction, one of the usual ways of testing, at microlevel data, if
SMEs experience a higher increase in employment is to test Gibrat’s law of “proportionate
growth”, which states that “the probability of a given proportionate change in size during a
specified period is the same for all firms in a given industry regardless of their size at the
beginning of the period”.

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