Employment Generation, Firm Size, and Innovation in Chile

Roberto Alvarez (), Jose Miguel Benavente, Rolando Campusano and Conrado Cuevas

No 54258, IDB Publications from Inter-American Development Bank

Abstract: This paper compiles and analyzes several sources of information to shed light on the relationship between innovation and employment growth in the manufacturing industry in Chile in the last 15 years. Our overall conclusions are that process innovation is generally not found to be a relevant determinant of employment growth, and that product innovation is usually positively associated with an expansion in employment. These results seem to be similar regardless of firm size and hold for both low- and high-tech industries. Our findings reveal that in-house R&D (make only strategy) is positively related with employment growth. However, this is not the case for the sample of small firms. With respect to employment growth by types of workers, skilled vs. unskilled, the evidence is less robust. However, in-house R&D appears to favor employment growth for both types of workers in low-tech industries.

Keywords: Science & Technology :: Research & Development; Labor :: Workforce & Employment; Science & Technology :: New Technologies; Innovation; new technology employment; research & development; Chile (search for similar items in EconPapers)
JEL-codes: D2 J23 L1 O31 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino, nep-sbm and nep-tid
Date: 2011-10
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Persistent link: http://EconPapers.repec.org/RePEc:idb:brikps:54258

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