Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey

Mezid N. Keraga () and Andreas Stephan
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Mezid N. Keraga: Addis Ababa University

No 494, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper provides novel evidence on the question of whether innovation expands or reduces employment using firm-level data from the World Bank Enterprise Survey (ES) for six African economies. The results of the difference-in-differences estimations combined with propensity score matching confirm that both product and process innovations significantly expand job opportunities in Africa. In addition, the findings show significant intra-industry innovation spillover effects on employment. In sum, this study supports the view that innovation enhances employment in the analyzed African economies.

Keywords: Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach (search for similar items in EconPapers)
JEL-codes: J20 O30 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2023-11-30
New Economics Papers: this item is included in nep-afr, nep-dev, nep-ent, nep-ino, nep-lma, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0494

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