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Innovation, Firm Size, Technology Intensity, and Employment Generation: Evidence from the Uruguayan Manufacturing Sector

Diego Aboal, Paula Garda, Bibiana Lanzilotta and Marcelo Perera

Emerging Markets Finance and Trade, 2015, vol. 51, issue 1, 3-26

Abstract: In this article, we investigate the effect of product and process innovation on employment growth and on employment composition in terms of skills using data from Uruguayan manufacturing firms’ innovation surveys. The results reveal that product innovation is associated with employment growth. There is (weaker) evidence that process innovation displaces labor, especially in high-tech firms. There is evidence that innovation is more complementary to skilled than to unskilled labor. Product innovation seems to have a larger positive effect on skilled labor, especially in high-tech industries. Process innovation in general displaces unskilled labor but is neutral in terms of skilled labor.

Date: 2015
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/1540496X.2015.998072

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