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Innovation and Job Creation and Destruction : Evidence from Spain

Published online by Cambridge University Press:  17 August 2016

César Alonso-Borrego  and
M. Dolores Collado
César Alonso-Borrego
Affiliation:
Universidad Carlos III de Madrid
M. Dolores Collado
Affiliation:
Universidad de Alicante
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Summary

In this paper we examine the effect of innovation on job creation and job destruction in Spanish manufacturing. Our empirical analysis is based on firm-level longitudinal data from which we have information on employment and innovation activity. The estimation approach consists of a two-step procedure that takes into account the fact that firms endogenously choose positive, negative or zero growth in employment, in which the selection mechanism is an ordered probit. Our results point out the importance of innovation variables on employment growth: innovative firms create more jobs -and destroy fewer- than non-innovative, and the degree of technological effort has a strong positive effect on net employment creation.

Résumé

Résumé

Dans cet article nous examinons l’impact de l’innovation sur la création et la destruction des emplois dans le secteur manufacturier espagnol. Notre analyse empirique s’appuie sur des données longitudinales au niveau de la firme contenant des informations sur l’emploi et les activités d’innovation. La méthode d’estimation est une procédure en deux étapes qui tient compte du fait que les firmes choisissent de façon endogène une croissance de l’emploi, positive, négative ou nulle, et dans laquelle le mécanisme de sélection est un probit ordonné. Nos résultats soulignent l’importance des variables d’innovation sur la croissance de l’emploi: les firmes innovantes créent plus d’emplois - et en détruisent moins- que les autres; le degré d’effort technologique a un effet fortement positif sur la création nette d’emplois.

Keywords

Labour demandtechnological innovationsample selectionJ23L23C33C34Demande de travailInnovation technologiqueSélection d’échantillonnageJ23L23C33C34
Type
II. Labor Economics and Human Capital Investments
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 68 , Special Issue 1-2: The New Economy: Implications and Viability , 2002 , pp. 149 - 168
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002 

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Footnotes

*

We thank Raouf Boucekkine, José E. Galdón-Sánchez, and an anonymous referee for helpful comments, and Fundación Empresa Pública for providing the raw data. The first author acknowledges research funding from the Spanish DGI, Grant BEC 2000-0170, and the second author acknowledges research funding from the Spanish DGI, Grant PB98-0979 and from the IVIE.

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