DIW
BERLIN
Aus den Veroffentlichungen des DIW Berlin
Andréanne Léger and Sushmita Swaminathan
Innovation Theories: Relevance and Implications
for Developing Country Innovation
Innovation is at the basis of economic development and as such, it is instrumental for devel-
oping countries. We review the literature on innovation from the perspectives of four select
branches of economics to build a conceptual framework of innovation applicable to developing
countries. The conceptual framework includes insights from the surveyed literature and identi-
fies areas of further research. Finally, we conclude with policy recommendations for innovation
policies in developing countries highlighting the fact that intellectual property protection is not
likely to be at the basis of innovation in these countries.
Discussion Paper No. 743
November 2007
Ronny Freier and Viktor Steiner
„Marginal Employment”: Stepping Stone or Dead End?
Evaluating the German Experience
„Marginal Employment”, i.e. employment at low working hours and earnings not covered by
social security, has been gaining importance in the German economy over the past decade. Us-
ing a large newly available panel data set and statistical matching techniques, we analyse the
effects of marginal employment on future individual outcome variables such as unemployment,
regular employment and earnings. In addition to average treatment effects, we calculate dy-
namic and cumulative treatment effects accounting for total time spent in various labor market
states and related earnings over a period of three years. We find that marginal employment
(i) does not affect time spent in regular employment within a three-years‘ observation period,
(ii) reduces future unemployment, (iii) slightly increases cumulated future earnings, on average,
and (iv) is associated with a small negative cumulative earnings effect for older workers in west
Germany.
Discussion Paper No. 744
November 2007
Wochenbericht des DIW Berlin Nr. 50/2007
771