Prove the following identity: $$ \sum_{k\ =\ 0}^{{\large\ell}}\left(-1\right)^{k} \binom{j - k}{\ell - 1}\binom{\ell}{k} = 0 $$ for some integers $\ell \geq 1$ and $j\geq \ell$.
Using wolfram alpha I have confirmed that this identity is true. But I am not sure how I can prove it myself. I have tried to split it into even and odd values of $k$, but that did not work. I have tried a proof by induction in combination with the identity $\binom{n}{k}=\binom{n-1}{k}+\binom{n-1}{k-1}$, but that also did not work. I think the proof might require a more sophisticated method.
Your induction idea should work. Using the identity you suggested, rewrite your expression as $$ \begin{align} \sum_{k=0}^l(-1)^k\binom{j-k}{l-1}\binom{l}{k}&=\sum_{k=0}^{l-1}(-1)^k\binom{j-k}{l-1}\binom{l-1}{k}+\sum_{k=1}^l(-1)^k\binom{j-k}{l-1}\binom{l-1}{k-1}\\ &=\sum_{k=0}^{l-1}(-1)^k\binom{j-k}{l-1}\binom{l-1}{k}-\sum_{k=0}^{l-1}(-1)^k\binom{j-1-k}{l-1}\binom{l-1}{k}. \end{align} $$ Now use your identity a second time, applying it to the binomial coefficient $\binom{j-k}{l-1}$ in the first sum. After cancelling some terms, you will be able to apply induction on $l$.