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- we find that robot adoption generates substantial output gains in thevicinity of 20-25% within four years, reduces the labor cost share by 5-7%-points, and leads to netjob creation at a rate of 10%. Finally, we reveal substantial job losses in firms that do not adoptrobots, and a productivity-enhancing reallocation of labor across firms, away from non-adopters,and toward adopters.By focusing attention on heterogeneity in robot adoption within narrowly defined industries,our results provide novel evidence how robots affect industry heterogeneity. Importantly, we do notfind any negative employment effects in those firms that start to adopt robots, even if we focus onspecific skills or groups of workers. On the contrary, our results robustly show that robot adopterscreate jobs in the subsequent years, relative to the control group, i.e., their competitors that donot adopt robots. In other words, negative employment effects materialize where they are ex-antethe least expected, namely in those firms that do not automate their production process. Hence,our study points to the importance of reallocation of resources across firms within industries, asrobots are creating new opportunities for some firms, while simultaneously leading to job losses innon-adopting firms.