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Technological Innovation and Employment: Complements or Substitutes

  • José Miguel Benavente
  • Rodolfo Lauterbach

In this paper we study the impact of innovation activities on employment. We develop an empirical strategy based on Jaumandreu (2003) which accounts for differences between product and process innovations. Using microdata at a firm level for the period 1998-2001, we found that product innovations affect positively and significantly employment levels in Chile.On the other hand there is no evidence to suggest that process innovations significantly affect employment after controlling for investment and sectorial patterns. These findings are of extremely interest in the current discussion about technological innovation policy in Chile.

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File URL: http://www.econ.uchile.cl/uploads/publicacion/8bc0ca97-0196-4e2d-ab08-2412a3290d9a.pdf
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Paper provided by University of Chile, Department of Economics in its series Working Papers with number wp221.

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Date of creation: Oct 2006
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Handle: RePEc:udc:wpaper:wp221
Contact details of provider: Web page: http://www.econ.uchile.cl/
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  1. Bound, John, et al, 1994. "Evidence on the Validity of Cross-Sectional and Longitudinal Labor Market Data," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 345-68, July.
  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," Journal of Economic Inequality, Springer, vol. 1(1), pages 67-99, April.
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