nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2011‒12‒13
five papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Innovation, Firm Size, Technology Intensity, and Employment Generation in Uruguay: The Microeconometric Evidence By Diego Aboal; Paula Garda; Bibiana Lanzilotta; Marcelo Perera
  2. Employment Generation, Firm Size and Innovation: Microeconometric Evidence from Argentina By Sheila de Elejalde; David Giuliodori; Rodolfo Stucchi
  3. Industrial dynamics and economic geography: a survey By Koen Frenken; Elena Cefis; Erik Stam
  4. Understanding the heterogeneity of cooperation on innovation: Firm-level evidence from Europe By Martin Srholec
  5. Effects of Innovation on Employment in Latin America: The Microeconometric Evidence By Gustavo Crespi; Ezequiel Tacsir

  1. By: Diego Aboal; Paula Garda; Bibiana Lanzilotta; Marcelo Perera
    Abstract: The aim of this paper is to analyze the relationship between innovation and employment, in terms of both its quantity and quality, in Uruguay. The effect of product and process innovation on employment growth and on employment composition in terms of skills was studied, using data from manufacturing firms' innovation surveys, matched against economic activity surveys. The impact of different innovation strategies was also analyzed, particularly producing technology vs. sourcing technology externally. The results revealed that product innovation is associated with employment growth. There is (weaker) evidence that process innovation displaces labor. Product innovation is not more complementary to skilled than to unskilled labor. Producing technology in-house has the biggest positive impact on employment, followed by the make-and-buy strategy. Similar results are found for small firms and firms belonging to the low- and high-tech sectors. Interviews carried out with innovation agents support the view that in general innovation does not lead to job losses and that it generates greater demand for a more qualified labor force.
    Keywords: Science & Technology :: New Technologies, Labor :: Workforce & Employment, Labor :: Labor Policy, job losses, innovation, unemployment, innovation strategies, firm size, employment quantity and quality, innovation surveys, job positions, vacancies
    JEL: D2 J23 L1 O31 O33
    Date: 2011–10
  2. By: Sheila de Elejalde; David Giuliodori; Rodolfo Stucchi
    Abstract: This paper provides evidence about the relationship between innovation and employment in Argentina. In particular, it quantifies the impact of different types of innovations (process or product innovations) on employment growth and skill composition (skilled-unskilled labor) and the impact of different innovation strategies (buy or make) on employment growth, and analyzes whether these impacts depend on firm size or technology intensity. To answer these questions a model proposed in Harrison, Jaumandreu, Mairesse, and Peters (2008) was estimated using an IV approach with data from the Innovation Surveys for Argentina for the period 1998-2001. The results suggest that product innovations have a positive impact on employment growth while process innovations have no significant impact on employment growth. In addition, there is some evidence that product innovations are skill-biased, and that a mixed innovative strategy of make and buy has a larger impact on employment growth than a buy-only strategy. Finally, similar impacts for small firms but differential impacts for low-tech and high-tech sectors were found.
    Keywords: Science & Technology :: New Technologies, Labor :: Workforce & Employment, Economics :: Production & Business Cycles, Economics :: Productivity, Innovation, skilled-unskilled labor, employment and innovation, firm size, employment generation, job positions, microeconometrics, Argentina
    JEL: D2 J23 L1 O31 O33
    Date: 2011–10
  3. By: Koen Frenken; Elena Cefis; Erik Stam
    Abstract: We review the literature on clusters and their effects on industrial dynamics as well on various lifecycle dynamics underlying the process of cluster formation and cluster dynamics. The review shows that there is little evidence that clusters enhance firm growth and survival. In the absence of localization economies, the emergence of clusters is best understood as an evolutionary process of capability transmission between parents firms and their spinoffs. We discuss various future research avenues and call for theorising based on firm heterogeneity as well as empirical research based on common methodological standards.
    Keywords: entry, exit, cluster, localization economies, lifecycle, firm heterogeneity
    JEL: L10 L20 R10
    Date: 2011–10
  4. By: Martin Srholec (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: Innovation is new combination of productive means that are internal or external to a firm. Arrangements to cooperate on innovation facilitate access to these external sources of knowledge. Using large micro datasets from the Third and Fourth Community Innovation Surveys in sixteen European countries, including nine new EU members, we examine the heterogeneity of relationships between various characteristics of firms, given by size, ownership or capabilities, and their propensity to cooperate on innovation with domestic as compared to foreign partners, with different types of organizations and how these patterns differ across countries. Econometric estimates of univariate, multivariate and multinomial probit (or logit) models indicate differences between domestic and foreign cooperation, but not between the various types of partners. Strong differences have been found along the level of economic development. Size of the country and openness to globalization proved relevant for explaining cooperation of firms on innovation abroad. Nevertheless, the results reveal that the context matters for interpretation of the cooperation variables themselves, because some of these arrangements may signal limited internal capabilities of firms, rather than virtuous systemic interactions, which complicates comparative studies of this data.
    Keywords: Innovation; cooperation; globalization; Community Innovation Survey; Europe.
    Date: 2011–12
  5. By: Gustavo Crespi; Ezequiel Tacsir
    Abstract: This presentation provides the comparative results of a project carried out by the Inter-American Development Bank to understand the links between innovation and employment in Latin America and the Caribbean. Special attention is paid to the importance of sectoral and size difference in both quantity and quality composition of employment. This project is based on national country studies performed by different research teams and includes research from Argentina, Chile, Costa Rica and Uruguay. This presentation was prepared for the 9th GLOBELICS Conference held in Buenos Aires, Argentina on November 15th, 2011.
    Keywords: Science & Technology :: New Technologies, Labor :: Workforce & Employment, Private Sector :: Business Development, Private Sector :: SME, Economics :: Productivity, innovation and employment, microeconomics, Argentina, Chile, Costa Rica, Uruguay, SMEs, innovation types, business innovation strategies
    Date: 2011–11

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