Buerger M., Broekel T. and Coad A. Regional dynamics of innovation: investigating the co-evolution of patents, research and development (R&D), and employment, Regional Studies. This paper investigates the lead-lag relationships between the growth rates of patents, research and development (R&D), and employment for German regions over the period 1999-2005. The panel data set employed includes information on four two-digit industries. The results obtained from a vector autoregression model show that an increase in patents is associated with subsequent growth of employment in the medical and optical equipment industry as well as in the Electrics and electronics industry. With respect to the latter, the growth of patents is also associated with subsequent growth of R&D. Neither of these effects can be found for both the Chemicals and the Transport equipment industries. © 2012 Copyright Regional Studies Association.