The Relationship between Innovation and Employment in the Peruvian Manufacturing Industry, 2012-2014
DOI:
https://doi.org/10.21678/apuntes.87.1053Keywords:
process innovation; product innovation; employment; instrumental variables.Abstract
This paper explores the relationship between innovation and employment in the Peruvian manufacturing industry based on the model developed by Jaumandreu (2003) and Harrison et al. (2008) and distinguishes between two types of innovation: product and process. The results show that process innovation reduces the level of employment by an average of 0.45% by replacing employment with more efficient physical capital. However, product innovation is found to increase the level of employment by an average of 0.67%, mainly because a new product is brought to market. The results obtained are robust according to size of firm, the quality structure of the workforce, and technological capacity.
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References
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• Alvarez, R., Benavente, J. M., Campusano, R., & Cuevas, C. (2011). Employment generation, firm size, and innovation in chile. Inter-American Development Bank.
• Antonucci, T., & Pianta, M. (2002). Employment effects of product and process innovation in Europe. International Review of Applied Economics, 16(3), 295-307.
• Baum, C. F., Lööf, H., Nabavi, P., & Stephan, A. (2017). A new approach to estimation of the R&D–innovation–productivity relationship. Economics of Innovation and New Technology, 26(1-2), 121-133.
• Benavente, J. M., & Lauterbach, R. (2008). Technological innovation and employment: complements or substitutes? The European Journal of Development Research, 20(2), 318-329.
• Bravo-Ortega, C., Benavente, J. M., & González, Á. (2014). Innovation, exports, and productivity: Learning and self-selection in Chile. Emerging Markets Finance and Trade, 50(sup1), 68-95.
• Chennells, L., & Van Reenen, J. (1999). Has Technology Hurt Less Skilled Workers?: An Econometric Survey of the Effects of Technical Change on the Structure of Pay and Jobs. London: Institute for Fiscal Studies.
• Cirera, X., Marin, A., & Markwald, R. (2015). Explaining export diversification through firm innovation decisions: The case of Brazil. Research Policy, 44(10), 1962-1973.
• Crespi, G., & Tacsir, E. (2011, September). Effects of innovation on employment in Latin America. In Science and Innovation Policy, 2011 Atlanta Conference on (pp. 1-11). IEEE.
• Crowley, F., & McCann, P. (2015). Innovation and productivity in Irish firms. Spatial Economic Analysis, 10(2), 181-204.
• De Fuentes, C., Dutrenit, G., Santiago, F., & Gras, N. (2015). Determinants of innovation and productivity in the service sector in Mexico. Emerging Markets Finance and Trade, 51(3), 578-592.
• Di Cintio, M., Ghosh, S., & Grassi, E. (2017). Firm growth, R&D expenditures and exports: An empirical analysis of Italian SMEs. Research Policy, 46(4), 836-852.
• Falk, M., & Seim, K. (2001). Workers’ skill level and information technology: a censored regression model. International Journal of Manpower, 22(1/2), 98-121.
• Falk, M., & Seim, K. (2001). The impact of information Technology on high-skilled labor in services: Evidence from firm-level panel data. Economics of Innovation and New Technology, 10(4), 289-323.
• Gallego, J. M., Gutiérrez, L. H., & Taborda, R. (2015). Innovation and productivity in the colombian service and manufacturing industries. Emerging Markets Finance and Trade, 51(3), 612-634.
• Griffith, R., Huergo, E., Mairesse, J., & Peters, B. (2006). Innovation and productivity across four European countries. Oxford review of economic policy, 22(4), 483-498.
• Harrison, R., Jaumandreu, J., Mairesse, J., & Peters, B. (2005). Does innovation stimulate employment. A Firm-level Analysis Comparable Micro Data from Four European Countries.
• Jaumandreu, J. (2003). Does innovation spur employment? A firm-level analysis using Spanish CIS data. Universidad Carlos III de Madrid, 17(4), 813-839.
• Kaiser, U. (2000). New technologies and the demand for heterogeneous labor: firm-level evidence for the German business-related service sector. Economics of Innovation and New Technology, 9(5), 465-486.
• Kaiser, U. (2001). The impact of foreign competition and new technologies on the demand for heterogeneous labor. Review of Industrial Organization, 19(1), 109-120.
• Klette, J., & Førre, S. E. (1998). Innovation and job creation in a smallopen economy-evidence from norwegian manufacturing plants 1982–92. Economics of Innovation and New Technology, 5(2-4), 247-272.
• Loayza, N. (2008). Causas y consecuencias de la informalidad en el Perú. Revista Estudios Económicos, 15, 43-64.
• Lööf, H., Mairesse, J., & Mohnen, P. (2017). CDM 20 years after.
• Mastrostefano, V., & Pianta, M. (2009). Technology and jobs. Economics of innovation and new technology, 18(8), 729-741.
• Meriküll, J. (2010). The impact of innovation on employment: firm-and industry-level evidence from a catching-up economy. Eastern European Economics, 48(2), 25-38.
• Nolazco, J. (2018). Efectos entre innovación, productividad y actividad exportadora: un análisis de las empresas manufactureras peruanas. Universidad de Lima, Instituto de Investigación Científica.
• Peters, B. (2004). Employment effects of different innovation activities: Microeconometric evidence.
• Yasar, M., Nelson, C. H., & Rejesus, R. (2006). Productivity and exporting status of manufacturing firms: Evidence from quantile regressions. Review of World Economics, 142(4), 675-694.
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Published
2020-07-22
How to Cite
Nolazco Cama, J. L., Céspedes Reynaga, N., & Salas Fernandez, H. (2020). The Relationship between Innovation and Employment in the Peruvian Manufacturing Industry, 2012-2014. Apuntes. Social Sciences Journal, 47(87). https://doi.org/10.21678/apuntes.87.1053
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