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Innovation and its Effects on Employment Composition: Microeconomic Evidence from Colombian Firms

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  • Juan Felipe Mejía Mejía

    ()

  • Yurani Arias Granada

    ()

Abstract

This study analyses the effects of innovation on employment in Colombian firms for the man- ufacturing and service sectors in two different periods: 2007-2010 for the manufacturing industry, and 2010-2011 for the service industry. Based on the theoretical framework proposed by Harri- son et al.(2014), we test this relationship using instrumental variables techniques. Data proceed from The Annual Manufacturing Survey, The Development and Technological Innovation Indus- trial Survey, and The Development and Technological Innovation Services Survey, all of them collected by the Colombian National Administrative Department of Statistics (DANE).Our em- pirical results show that sales growth due to new products positively affects employment growth, and process innovation has not a displacement effect on employment growth. This is robust to different specifications and the inclusion of control variables.

Suggested Citation

  • 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.
  • Handle: RePEc:col:000122:012338
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    References listed on IDEAS

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    1. Lachenmaier, Stefan & Rottmann, Horst, 2011. "Effects of innovation on employment: A dynamic panel analysis," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 210-220, March.
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    5. Mariacristina Piva & Marco Vivarelli, 2005. "Innovation and Employment: Evidence from Italian Microdata," Journal of Economics, Springer, vol. 86(1), pages 65-83, October.
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    7. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
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    9. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
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    13. Smolny, Werner, 1998. "Innovations, Prices and Employment: A Theoretical Model and an Empirical Application for West German Manufacturing Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 46(3), pages 359-381, September.
    14. Tommaso Antonucci & Mario Pianta, 2002. "Employment Effects of Product and Process Innovation in Europe," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 295-307.
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    More about this item

    Keywords

    Employment Growth; Process Innovation; Product Innovation; Colombian Firms;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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