The relationship between innovation and employment is a complex one and has long been a topical issue in economic theory. Moving from the classical question ‘‘does technology create or destroy jobs?’’ recent research has investigated the impact of different types of innovation and the structural and institutional factors affecting the quantity of employment change. Quality aspects have received increasing attention, with questions of ‘‘what type of jobs are created or destroyed by innovation?’’ This line of research has asked, ‘‘how does the composition of skills change’’ and ‘‘how does the wage structure change,’’ leading to a large literature on skill biased technical change and on wage polarization. This chapter examines the enormous body of scholarly research on this topic within the advanced economies. First, the perspectives, scope, and types of innovations are considered, identifying the different employment effects they may have. Second, the effects on the quantity of employment are reviewed at the firm, industry, and macroeconomic level. Third, changes in the quality of employment are examined, considering the effects on skills and wages, and the impact of organizational innovation, again at different levels of analysis. A summary of stylized facts concludes the chapter with a discussion of future research issues.