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Innovation and employment in sub-Saharan Africa: New evidence from the World Bank Enterprise Survey

Author

Listed:
  • Keraga, Mezid N.

    (Ethiopian Civil Service University)

  • Lööf, Hans

    (Royal Institute of Technology)

  • Stephan, Andreas

    (Linnaeus University)

Abstract

This paper presents new insights into the relationship between innovation and employment in low-income countries. We use firm-level data sourced from the World Bank Enterprise Survey (ES) and focus on six sub-Saharan African (SSA) economies over the period 2003-2019. The econometric results from difference-in-differences (DiD) estimations, in conjunction with propensity score matching show a positive influence of product innovation on both permanent and total firm-level employment. The evidence for employment impact of process innovations is weak. Considering relations between firms, we find a positive intra-industry spillover effect from both product and process innovation on employment in firms operating within the same two-digit industry, while the results for inter-industry spillovers are non-significant or negative.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:cesisp:0497
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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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