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This article provides evidence about the effect of innovation on employment in Argentina in the period 1998-2001. In particular, we quantify the effect of process and product innovations on employment growth and the skill composition. Our results show that: (1) Product innovations have a positive effect on employment growth biased toward skill labor; (2) Process innovations do not affect employment growth or composition; (3) There are no heterogeneous effects in technology intensity and size; (4) Most of the contraction in employment in this period was explained by noninnovators.

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This paper studies the effect of product and process innovations on the creation of jobs in the Spanish manufacturing sector over the period 1991-2005. We also use a change in the Employment Protection Legislation (EPL) in 1997 to study the effect of innovations on permanent and temporary workers before and after that change. We find that both product and process innovation created jobs in the Spanish manufacturing sector. Additionally, we find that before the change in the EPL in 1997 innovations did not affect the number of permanent workers and all the increase in employment was explained by the increase in the number of temporary workers. After the change in the labor regulations, innovations increased both the number of temporary and permanent employees. Interestingly, while the increase in temporary workers takes place after one year of the innovations, the increase in permanent workers occurs mainly two year after the innovations.