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Technological innovation and employment: complements or substitutes?


  • Jose Miguel Benavente
  • Rodolfo Lauterbach


In this paper we study the impact of innovative activities on employment in Chile. We closely follow a previous work by Harrison, Jaumandreu, Mairesse and Peters (2005) who developed an empirical strategy based on Jaumandreu (2003) which accounts for differences between product and process innovations. Using firm-level micro-data for the period 1998-2001, we find that product innovations affect employment positively and significantly. On the other hand, there is no evidence to suggest that process innovations significantly affect employment after controlling for investment and sectoral patterns.

Suggested Citation

  • Jose Miguel Benavente & Rodolfo Lauterbach, 2008. "Technological innovation and employment: complements or substitutes?," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 318-329.
  • Handle: RePEc:taf:eurjdr:v:20:y:2008:i:2:p:318-329 DOI: 10.1080/09578810802060744

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    References listed on IDEAS

    1. Pagan,Adrian & Ullah,Aman, 1999. "Nonparametric Econometrics," Cambridge Books, Cambridge University Press, number 9780521355643, March.
    2. Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003. "For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 67-99, April.
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    Cited by:

    1. Gustavo Crespi & Elena Arias-Ortiz & Ezequiel Tacsir & Fernando Vargas & Pluvia Zuñiga, 2014. "Innovation for economic performance: the case of Latin American firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 31-50, June.
    2. David Giuliodori & Rodolfo Stucchi, 2012. "Innovation and job creation in a dual labor market: evidence from Spain," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 801-813, November.
    3. Crespi, Gustavo & Tacsir, Ezequiel, 2011. "Effects of innovation on employment in Latin America," MPRA Paper 35429, University Library of Munich, Germany.
    4. Waheed, Abdul, 2012. "Employment effect of innovation: microdata evidence from Bangladesh and Pakistan," MERIT Working Papers 024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Giovanni Dosi & Xiaodan Yu, 2017. "Technological catching-up, sales dynamics and employment growth: evidence from China's manufacturing firms," LEM Papers Series 2017/27, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Victoria Castillo & Alessandro Maffioli & Sofía Rojo & Rodolfo Stucchi, 2014. "The effect of innovation policy on SMEs’ employment and wages in Argentina," Small Business Economics, Springer, vol. 42(2), pages 387-406, February.
    7. repec:eee:wdevel:v:96:y:2017:i:c:p:1-18 is not listed on IDEAS
    8. Dosi, Giovanni & Yu, Xiaodan, 2018. "Technological catching-up, sales dynamics and employment growth: evidence from China’s manufacturing firms," GLO Discussion Paper Series 177, Global Labor Organization (GLO).
    9. Juan Felipe Mejía Mejía & Yurani Arias Granada, 2014. "Innovation and its Effects on Employment Composition: Microeconomic Evidence from Colombian Firms," DOCUMENTOS DE TRABAJO CIEF 012338, UNIVERSIDAD EAFIT.
    10. Flavio Calvino & Maria Enrica Virgillito, 2016. "The Innovation-Employment nexus: a critical survey of theory and empirics," LEM Papers Series 2016/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. repec:gam:jsusta:v:9:y:2017:i:11:p:2057-:d:118260 is not listed on IDEAS
    12. Micheline Goedhuys & Leo Sleuwaegen, 2010. "High-growth entrepreneurial firms in Africa: a quantile regression approach," Small Business Economics, Springer, vol. 34(1), pages 31-51, January.
    13. Ernst, Daniel & Stoetzer, Matthias-Wolfgang, 2012. "Beschäftigungseffekte von Innovationen auf Unternehmensebene: Ein Überblick theoretischer und empirischer Befunde," Wirtschaftswissenschaftliche Schriften 03/2012, University of Applied Sciences Jena, Department of Business Administration.
    14. Ramiro De Elejalde & David Giuliodori & Rodolfo Stucchi, 2013. "Employment and innovation: Firm level evidence from Argentina," ILADES-Georgetown University Working Papers inv291, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
    15. Sérgio Kannebley & Júlia Sekkel & Bruno Araújo, 2010. "Economic performance of Brazilian manufacturing firms: a counterfactual analysis of innovation impacts," Small Business Economics, Springer, vol. 34(3), pages 339-353, April.
    16. Flavio Calvino, 2016. "Technological Innovation and the Distribution of Employment Growth: a firm-level analysis," LEM Papers Series 2016/37, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    17. Caterina Santi & Pietro Santoleri, 2017. "Exploring the link between innovation and growth in Chilean firms," Small Business Economics, Springer, vol. 49(2), pages 445-467, August.
    18. Roberto Álvarez & Álvaro García, 2008. "Productivity, Innovations and Exports in the Chilean Manufacturing Industry," Working Papers Central Bank of Chile 476, Central Bank of Chile.
    19. Laura Barbieri & Mariacristina Piva & Marco Vivarelli, 2016. "The Employment Impact of Different Forms of Innovation: Evidence from Italian Community Innovation Survey," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1620, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    20. Barbieri, Laura & Piva, Mariacristina & Vivarelli, Marco, 2016. "R&D, Embodied Technological Change and Employment: Evidence from Italian Microdata," IZA Discussion Papers 10354, Institute for the Study of Labor (IZA).
    21. Angela Triguero & David Córcoles & Maria Cuerva, 2014. "Persistence of innovation and firm’s growth: evidence from a panel of SME and large Spanish manufacturing firms," Small Business Economics, Springer, vol. 43(4), pages 787-804, December.


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