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The effects of innovation on employment in developing countries : evidence from enterprise surveys

Author: Xavier Cirera; Leonard Sabetti; World Bank. Trade and Competitiveness Global Practice Group.
Publisher: Washington, D.C. : World Bank, Trade and Competitiveness Global Practice Group, 2016.
Series: Policy research working paper (World Bank), WPS 7775.
Edition/Format:   eBook : Document : English
Summary:
"While existing evidence in advanced economies suggests a possible role for technological innovation in job creation, its role in developing countries remains largely undocumented. This paper sheds light on the direct impact of technological as well as organizational innovation on firm level employment growth based on the theoretical model of Harrison, Jaumandreu, Mairesse, and Peters (2014) using a sample of over  Read more...
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Additional Physical Format: Print Version:
Cirera, Xavier
Effects of Innovation on Employment in Developing Countries: Evidence from Enterprise Surveys.
Washington, D.C. : The World Bank, 2016
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Xavier Cirera; Leonard Sabetti; World Bank. Trade and Competitiveness Global Practice Group.
OCLC Number: 956408394
Notes: "August 2016."
Description: 1 online resource (41 pages).
Series Title: Policy research working paper (World Bank), WPS 7775.
Responsibility: Xavier Cirera, Leonard Sabetti.

Abstract:

"While existing evidence in advanced economies suggests a possible role for technological innovation in job creation, its role in developing countries remains largely undocumented. This paper sheds light on the direct impact of technological as well as organizational innovation on firm level employment growth based on the theoretical model of Harrison, Jaumandreu, Mairesse, and Peters (2014) using a sample of over 15,000 firms in Africa, South Asia, Middle East and North-Africa and Eastern Europe and Central Asia. The results suggest that new sales associated with product innovations tend to be produced with just as much or higher levels of labor intensity. The effect is largest in lower income countries and the African region, where firms are further away from the technological frontier. More importantly, process innovations that involve automation of production do not have a short-term negative impact on firm employment. However, there is some evidence of a negative effect of automation on employment that manifests in increases in efficiency that reduce the elasticity of new sales to employment. Overall, these results are qualitatively similar to previous findings in advanced economies and highlight a positive direct role of innovation on the quantity of employment but at a decreasing rate as firms' transition to the technological frontier."--Abstract.

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