Effects of Innovation on Employment: An Analysis at the Firm Level in Bolivia
Peer Reviewed
Date issued
September 2021
Subject
Innovation;
Labor;
Productivity;
Labor Force;
Business Innovation;
Investment;
Innovation Activity;
Science and Technology
JEL code
D02 - Institutions: Design, Formation, Operations, and Impact;
O12 - Microeconomic Analyses of Economic Development;
O14 - Industrialization • Manufacturing and Service Industries • Choice of Technology;
O31 - Innovation and Invention: Processes and Incentives;
O33 - Technological Change: Choices and Consequences • Diffusion Processes;
O40 - Economic Growth and Aggregate Productivity: General
Category
Working Papers
This study quantifies the impact of process and product innovation on employment growth in Bolivia by using microdata from a survey on innovation conducted in Bolivia in 2016. Following the model of Harrison, Jaumandreu, Mairesse, and Peters (2008) and the adaptations for Latin America of Crespi and Tacsir (2013) and Elejalde, Giuliodori, and Stucchi (2015), we demonstrate that employment growth is explained by product innovation. On the other hand, we find no evidence of a displacement effect due to process innovation. With respect to innovation and work composition, we observe that the reation of qualified employment is slightly favored over that of unqualified employment.
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