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Firm Innovation and Employment in South Africa: Examining the Role of Export Participation and Innovation Novelty

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  • Karmen Naidoo
  • Marta Bengoa
  • Erika Kraemer-Mbula
  • Fiona Tregenna

Abstract

This paper studies the effects of process innovation and product innovation on firm-level employment in South Africa. We contribute through two novel extensions, analyzing how export status and the degree of novelty of innovation affect the innovation-employment relationship. We find process innovation to be more employment generating than product innovation. Furthermore, both process and product innovations have larger positive effects on employment growth for exporting firms relative to non-exporting firms. Finally, firms that introduce radical innovations that are new to the market, experience a higher positive employment effect than firms that introduce innovations that are new to only the firm.

Suggested Citation

  • Karmen Naidoo & Marta Bengoa & Erika Kraemer-Mbula & Fiona Tregenna, 2023. "Firm Innovation and Employment in South Africa: Examining the Role of Export Participation and Innovation Novelty," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(2), pages 589-604, January.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:2:p:589-604
    DOI: 10.1080/1540496X.2022.2098012
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    Cited by:

    1. Keraga, Mezid N. & Stephan, Andreas, 2023. "Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey," Working Paper Series in Economics and Institutions of Innovation 494, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Keraga, Mezid N. & Lööf, Hans & Stephan, Andreas, 2024. "Innovation and employment in sub-Saharan Africa: New evidence from the World Bank Enterprise Survey," Working Paper Series in Economics and Institutions of Innovation 497, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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