Innovation and Employment: A Firm Level Study of Indian Industries

Arup Mitra () and Amit Kumar Jha ()
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Arup Mitra: Delhi University
Amit Kumar Jha: Delhi University

A chapter in Technology, 2016, pp 113-140 from Springer

Abstract: Abstract This study based on the firm level data for eleven industries for the period ranging from 1998 through 2010 makes an attempt to capture the effect of R&D on employment in the backdrop of the debate on possible tradeoffs between innovation and labour absorption. It also estimates the firm specific time variant total factor productivity growth and technical efficiency and assesses the impact of R&D on these performance indicators. Though the findings are not supportive of a positive relationship between R&D and productivity, the elasticity of employment with respect to R&D is seen to be positive in a number of industries. Even when R&D does not mean actual innovation of technology, it involves processing of byproducts and efforts pursued to bring in an improvement in product quality and efficiency which may be resulting in employment gains.

Keywords: Innovation; R&D; Employment; TFPG; Technical efficiency (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-10-1684-4_7

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DOI: 10.1007/978-981-10-1684-4_7

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