Does innovation create or destroy jobs? An application for the manufacturing and service industries

Does innovation create or destroy jobs? An application for the manufacturing and service industries

  • Yurani Arias Granada ,

Keywords:

Job growth, Process innovation, Product innovation, Organizational changes, Marketing changes

Abstract

Companies invest and develop innovations primarily seeking profit; they also create new products or processes seeking a greater market share. On the other hand, labor markets play a key role within countries and companies in driving productivity growth and innovation. In this way, it is extremely important to assess how technological change can generate or destroy employment. These effects depend on the dynamics behind the innovation and on factors such as the speed of adoption, the industries and sectors affected, the skills needed or the speed of adjustment in the workforce (Pianta, 2006). In this sense, this research aims to estimate how Colombian companies are affected by the introduction of various types of innovations (products, processes, introduction of new organizational and marketing models), and the subsequent effects on employment growth. In particular, we seek to explore whether or not there is an employment displacement effect through the introduction of innovations in the Colombian context. We examined the effects on various categories of employment: skilled and unskilled, female and male, full-time and part-time. We also explore heterogeneities based on company size, intensity of innovation, and differences between industry and service sectors. We seek to explore whether or not there is an employment displacement effect through the introduction of innovations in the Colombian context. We examined the effects on various categories of employment: skilled and unskilled, female and male, full-time and part-time. We also explore heterogeneities based on company size, intensity of innovation, and differences between industry and service sectors. We seek to explore whether or not there is a displacement effect on employment by introducing innovations in the Colombian context. We examined the effects on various categories of employment: skilled and unskilled, female and male, full-time and part-time. We also explore heterogeneities based on company size, intensity of innovation, and differences between industry and service sectors.

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