Innovation and Job Creation and Destruction

Alonso‐Borrego, César; Collado, Dolores

doi:10.3917/rel.681.0148

Cited by 13 publications

(9 citation statements)

References 11 publications

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“…Likewise, Smolny (1998), analysing data of German firms from 1980 to 1992, shows a positive effect of process innovations on workforce. Alonso‐Borrego and Collado (2002), examining a sample of Spanish manufacturing firms during the period 1990‐1997, obtain that the indicator of process innovations also has a positive and significant effect on job creation. In a similar vein, Greenan (2003), in a study on a large representative sample of French firms that introduced advanced manufacturing systems in 1988‐1993, finds that firms innovating in technologies created more jobs than non‐innovators.…”

Section: Theorizing the Relationship Between Firm Innovation And Downsizingmentioning

confidence: 99%

Effects of process and product‐oriented innovations on employee downsizing

Vicente‐Lorente

Zúñiga‐Vicente

2012

International Journal of Manpower

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Purpose -The purpose of this paper is to examine the role played by different types of firm innovation on employee downsizing. Drawing on economic and management views, the authors aims to assess the potential positive or negative effect of different types of processes (i.e. new technology via the introduction of new equipment as well as new methods of organizing the workforce) and product (i.e. number of innovations) innovations on employee downsizing. Design/methodology/approach -The empirical setting is a sample of Spanish manufacturing firms over the period 1994-2006. The authors employ probit models for panel data as an empirical tool. Findings -The results show a negative and significant effect of process innovations associated with acquiring and deploying new production equipment and product-oriented innovations on the probability of carrying out important reductions in workforce. However, a positive and significant effect is found when process innovations are linked to the adoption of new methods of organizing the workforce. Practical implications -Managers might play a significant role in employment creation, especially when they carry out process innovations related to the acquisition of complementary production assets (i.e. new equipment) and market highly innovative products. Policy makers might contribute to diminish the potential number of employees affected by firms' downsizing strategies by designing, for example, public subsidies systems that deliberately prompt both types of innovations. Originality/value -The authors make an effort to provide alternative explanations about why firms downsize, as they analyze different types of process and product innovations whose effects on employment (and, thus, downsizing) do not seem to be clear. Moreover, the paper furthers one's understanding of the effect of firm innovation by focusing on the potential effect of one type of process innovation which has not been examined until now: the adoption and implementation of new methods of organizing the workforce owing to new technology.

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Section: Theorizing the Relationship Between Firm Innovation And Downsizingmentioning

confidence: 99%

Effects of process and product‐oriented innovations on employee downsizing

Vicente‐Lorente

Zúñiga‐Vicente

2012

International Journal of Manpower

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“…This will be the case, for example, if the relative prices are constant during the period. 2 Using the results of the previous section we can write an approximated decomposition of the employment growth in the following way…”

Section: The Employment Equationmentioning

confidence: 99%

Technological innovation and employment: complements or substitutes?

Benavente

Lauterbach

2008

Eur J Dev Res

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In this paper we study the impact of innovative activities on employment in Chile. We closely follow a previous work by Harrison, Jaumandreu, Mairesse and Peters (2005) who developed an empirical strategy based on Jaumandreu (2003) which accounts for differences between product and process innovations. Using firm-level micro-data for the period 1998-2001, we find that product innovations affect employment positively and significantly. On the other hand, there is no evidence to suggest that process innovations significantly affect employment after controlling for investment and sectoral patterns.process innovation, product innovation, employment, instrumental variables methods,

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“…The empirical analysis reveals that R&D and patenting lead to significant employment gains. Alonso‐Borrego and Collado (2002) examine the effect of innovation on job creation and job destruction in Spanish manufacturing. Using a two‐step procedure to consider firms’ endogenous choices on positive, negative, or zero growth in employment, they determine that innovative firms create more jobs (and destroy fewer) than non‐innovative firms, and that the degree of technological effort has a strong positive effect on net employment creation.…”

Section: Previous Firm‐level Literaturementioning

confidence: 99%

Developing Employment Effects of Innovations: Microeconometric Evidence From Taiwan

Yang

Lin

2008

The Developing Economies

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This paper aims to identify the effects of innovation on employment and labor composition in Taiwan. Using a new and detailed firm-level data set, the empirical results determine that innovations, measured by R&D investments or patent counts, have a positive impact on employment. Both of the estimated employment effects of product and process innovations are overall significantly positive. Although the effects of process innovations differ between high and low R&D-intensive industries, the process innovation tends to expand the firms' output and then increase employment for high R&D-intensive industries. However, it frequently results in laborsavings in terms of production work and reduces jobs in low R&D-intensive industries. Moreover, technological innovations are found to be non-neutral, leading to a shift in labor composition in favor of skilled and more educated workers.

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Innovation and Job Creation and Destruction

Cited by 13 publications

References 11 publications

Effects of process and product‐oriented innovations on employee downsizing

Effects of process and product‐oriented innovations on employee downsizing

Technological innovation and employment: complements or substitutes?

Developing Employment Effects of Innovations: Microeconometric Evidence From Taiwan

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