Effect of Innovation on Employment Growth in SMEs:Based on the Data of 443 Listed Companies in China

Based on the panel data of 443 listed companies in China SMEs Board from 2011 to 2015, we examined the direct effect and indirect effect of innovation on employment growth in SMEs. The difference in the employment effect of innovation between different regions and ownerships is analyzed. The result shows that innovation has significant positive impact on employment growth in SMEs; there are obvious regional differences and ownership differences in the impact of innovation on employment growth.