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Innovation and Employment: A Firm Level Study of Indian Industries

In: Technology

Author

Listed:
  • Arup Mitra

    (Delhi University)

  • Amit Kumar Jha

    (Delhi University)

Abstract

This study based on the firm level data for eleven industries for the period ranging from 1998 through 2010 makes an attempt to capture the effect of R&D on employment in the backdrop of the debate on possible tradeoffs between innovation and labour absorption. It also estimates the firm specific time variant total factor productivity growth and technical efficiency and assesses the impact of R&D on these performance indicators. Though the findings are not supportive of a positive relationship between R&D and productivity, the elasticity of employment with respect to R&D is seen to be positive in a number of industries. Even when R&D does not mean actual innovation of technology, it involves processing of byproducts and efforts pursued to bring in an improvement in product quality and efficiency which may be resulting in employment gains.

Suggested Citation

  • Arup Mitra & Amit Kumar Jha, 2016. "Innovation and Employment: A Firm Level Study of Indian Industries," India Studies in Business and Economics, in: N.S. Siddharthan & K. Narayanan (ed.), Technology, pages 113-140, Springer.
    • Handle: RePEc:spr:isbchp:978-981-10-1684-4_7
    DOI: 10.1007/978-981-10-1684-4_7
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    Cited by:

    1. Paola Azar, 2020. "Politics as a determinant of primary school provision The case of Uruguay, 1914-1954," Documentos de Trabajo (working papers) 20-07, Instituto de Economía - IECON.
    2. Carlos Bianchi & Hugo Laguna, 2020. "Firm’s innovation strategies and employment: new evidence from Uruguay," Documentos de Trabajo (working papers) 20-06, Instituto de Economía - IECON.

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