The relationship between innovation and employment in the Peruvian manufacturing industry, 2012-2014

José Luis Nolazco Cama, Nikita Céspedes Reynaga, Humberto Salas Fernández

Research output: Contribution to journalArticle (Contribution to Journal)

Abstract

This paper explores the relationship between innovation and employment in the Peruvian manufacturing industry based on the model developed by Jaumandreu (2003) and Harrison et al. (2008) and distinguishes between two types of innovation: product and process. The results show that process innovation reduces the level of employment by an average of 0.45% by replacing employment with more efficient physical capital. However, product innovation is found to increase the level of employment by an average of 0.67%, mainly because a new product is brought to market. The results obtained are robust according to size of firm, the quality structure of the workforce, and technological capacity.

Translated title of the contributionThe relationship between innovation and employment in the Peruvian manufacturing industry, 2012-2014
Original languageSpanish
Pages (from-to)213-253
Number of pages41
JournalApuntes
Volume47
Issue number87
DOIs
StatePublished - 2020

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