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

Author

Listed:
  • Karmen Naidoo

    (DSI/NRF South African Research Chair in Industrial Development, College of Economics and Business, University of Johannesburg.)

  • Marta Bengoa

    (DST/NRF South African Research Chair in Industrial Development, University of Johannesburg, South Africa)

  • Erika Kraemer-Mbula

    (DST/NRF/Newton Fund Trilateral Research Chair in Transformative Innovation, the 4th Industrial Revolution and Sustainable Development, University of Johannesburg, South Africa.)

  • Fiona Tregenna

    (DST/NRF South African Research Chair in Industrial Development, University of Johannesburg, South Africa)

Abstract

This paper studies the effect of process and product innovation on firm-level employment growth in South Africa. We contribute through two novel extensions, analysing how export participation 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 more radical innovations (new to the market) experience a higher positive employment effect than firms that introduce less radical innovations (new to the firm).

Suggested Citation

  • Karmen Naidoo & Marta Bengoa & Erika Kraemer-Mbula & Fiona Tregenna, 2021. "Firm Innovation and Employment in South Africa: Examining the Role of Export Participation and Innovation Novelty," SARChI-ID Working Papers 2021-03, SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ), revised May 2021.
    • Handle: RePEc:adz:wpaper:202103
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    Cited by:

    1. is not listed on IDEAS
    2. Guillermo Arenas Díaz & Alex J. Guerrero & Joost Heijs, 2024. "The effects of product and process innovation on employment: a meta-regression analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(1), pages 35-68, March.
    3. 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.
    4. 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.

    More about this item

    Keywords

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    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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