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

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  • Diego Aboal
  • Paula Garda
  • Bibiana Lanzilotta
  • Marcelo Perera
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.

Suggested Citation

  • Diego Aboal & Paula Garda & Bibiana Lanzilotta & Marcelo Perera, 2015. "Innovation, Firm Size, Technology Intensity, and Employment Generation: Evidence from the Uruguayan Manufacturing Sector," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(1), pages 3-26, January.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:3-26
    DOI: 10.1080/1540496X.2015.998072
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    Citations

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    Cited by:

    1. Feng Liu & Kwangtae Park & Unjung Whang, 2019. "Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs," Sustainability, MDPI, vol. 11(14), pages 1-16, July.
    2. Heijs, Joost & Arenas Díaz, Guillermo & Vergara Reyes, Delia Margarita, 2019. "Impact of innovation on employment in quantitative terms: review of empirical literature based on microdata," MPRA Paper 95326, University Library of Munich, Germany.
    3. Ofori, Pamela E. & Ofori, Isaac K. & Castelnovo, Paolo, 2024. "Effects of Innovation and Economic Freedom on Female Economic Inclusion," EconStor Preprints 298786, ZBW - Leibniz Information Centre for Economics.
    4. Ibrahim Mike Okumu & Edward Bbaale & Madina Mwagale Guloba, 2019. "Innovation and employment growth: evidence from manufacturing firms in Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-27, December.
    5. Ofori, Pamela E. & Ofori, Isaac K. & Castelnovo, Paolo, 2024. "Effects of Innovation and Economic Freedom on Female Economic Inclusion," MPRA Paper 121244, University Library of Munich, Germany.
    6. Díaz, Guillermo Arenas & Barge-Gil, Andrés & Heijs, Joost, 2020. "The effect of innovation on skilled and unskilled workers during bad times," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 141-158.
    7. Yongli Zhang & Yihui An & Yan Wang, 2023. "Evaluation of Green Industry Innovation Efficiency Based on Three-Stage DEA Model: A Case Study of Chinese Information Technology Industry," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    8. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.

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