Effects of innovation on employment in Latin America
AbstractThis study examines the impact of process and product innovation on employment growth across four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro data from innovation surveys. Specifically, we relate employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that that compensation effects are prevalent, and the introduction of new products is associated with employment growth at the firm level. Specifically, we find that for the manufacturing firms as a whole, the introduction of process innovations only affects the employment growth in the countries case of Chile. At the same time, we observe no evidence of displacement effects due to the introduction of product innovations. In fact, the observed compensation effects resulting from the introduction of new products imply, in turn, employment growth even when the replacement of old products is taken into account.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 35429.
Date of creation: 28 Sep 2011
Date of revision:
Innovation; Employment; Developing countries; Latin America; Innovation surveys;
Other versions of this item:
- Crespi, Gustavo & Tacsir, Ezequiel, 2013. "Effects of innovation on employment in Latin America," MERIT Working Papers 001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-INO-2012-01-03 (Innovation)
- NEP-LAM-2012-01-03 (Central & South America)
- NEP-TID-2012-01-03 (Technology & Industrial Dynamics)
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