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Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey

Author

Listed:
  • Keraga, Mezid N.

    (Addis Ababa University)

  • Stephan, Andreas

    (Linnaeus University)

Abstract

This paper provides novel evidence on the question of whether innovation expands or reduces employment using firm-level data from the World Bank Enterprise Survey (ES) for six African economies. The results of the difference-in-differences estimations combined with propensity score matching confirm that both product and process innovations significantly expand job opportunities in Africa. In addition, the findings show significant intra-industry innovation spillover effects on employment. In sum, this study supports the view that innovation enhances employment in the analyzed African economies.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:cesisp:0494
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    More about this item

    Keywords

    Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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