Firm’s innovation strategies and employment: new evidence from Uruguay
Resumen:
A large and rich body of literature has shown that the relationship between innovation and employment is complex and dynamic in nature. From a firm’s level analysis, recent researches have shown heterogeneous empirical patterns for developed and developing countries. This paper contributes by inquiry in the role of innovation strategies as determinants of the firm’s employment growth in a Latin American small middle-income country. Adapting econometric structural models currently in vogue, we discuss the effects of three innovation strategies (Make, Buy, Make&Buy) on the firm’s workforce growth. In line with the literature, we identify a significant positive relation between product innovation associated with Make and Make&Buy strategies, however, on the contrary to most recent research we find a positive and significant effects of process innovation associated to Buy strategies. Considering technological, sectoral and firm characteristics, our findings show a clear positive effect of any innovation strategy in the growth of the firm’s workforce. Meanwhile, no innovative strategies negatively affect workforce growth. Our findings contribute by deepening the understanding of the firm level determinants of employment in developing countries. We analyze our result in the light of a recent but extensive evidence on the relationship between innovation and employment at firm’s level in Uruguay. In particular, we discuss the traditional explanation on the firm’s technological behavior in Latin America, to discuss the effects on employment of integrative innovation strategies in Uruguay.
Una amplia y rica literatura ha mostrado que la relación entre innovación y empleo es de naturaleza compleja y dinámica. Investigaciones recientes han mostrado patrones empíricos heterogéneos a nivel de la firma, tanto para países desarrollados como en desarrollo. Este estudio analiza el rol de las estrategias de innovación como determinante del crecimiento del empleo a nivel de la firma en un país latinoamericano de ingresos medios. Se discute el efecto de cuatro estrategias de innovación (Make, Buy, Make&Buy) sobre el crecimiento del empleo, adaptando modelos econométricos estructurales largamente utilizados en investigaciones previas. En línea con la literatura, se identifican relaciones positivas y significativas entre innovación en productos, asociada con la estrategia Make&Buy. No obstante, a diferencia de lo encontrado en las investigaciones recientes, se encuentra un efecto positivo y significativo de la innovación en procesos, asociada con la estrategia Buy. Tomando en consideración las características tecnológicas y sectoriales de las firmas, los resultados encontrados muestran un efecto positivo claro de las estrategias de innovación sobre el crecimiento del empleo en las mismas. Adicionalmente, la ausencia de estrategias de innovación afecta negativamente el crecimiento del empleo. Estos hallazgos van en la dirección de mejorar la comprensión de los determinantes del empleo a nivel de la firma en los países en desarrollo. Para eso discutimos los resultados a la luz de una reciente, pero extensa acumulación de estudios sobre innovación y empleo a nivel de firma para Uruguay. En particular, se discute la explicación tradicional sobre el comportamiento tecnológico de la firma en América Latina.
2020 | |
Innovation strategies Employment Latin America Uruguay Empleo Estrategias de innovación América Latina |
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Inglés | |
Universidad de la República | |
COLIBRI | |
https://hdl.handle.net/20.500.12008/24910 | |
Acceso abierto | |
Licencia Creative Commons Atribución - No Comercial - Sin Derivadas (CC - By-NC-ND 4.0) |
Sumario: | A large and rich body of literature has shown that the relationship between innovation and employment is complex and dynamic in nature. From a firm’s level analysis, recent researches have shown heterogeneous empirical patterns for developed and developing countries. This paper contributes by inquiry in the role of innovation strategies as determinants of the firm’s employment growth in a Latin American small middle-income country. Adapting econometric structural models currently in vogue, we discuss the effects of three innovation strategies (Make, Buy, Make&Buy) on the firm’s workforce growth. In line with the literature, we identify a significant positive relation between product innovation associated with Make and Make&Buy strategies, however, on the contrary to most recent research we find a positive and significant effects of process innovation associated to Buy strategies. Considering technological, sectoral and firm characteristics, our findings show a clear positive effect of any innovation strategy in the growth of the firm’s workforce. Meanwhile, no innovative strategies negatively affect workforce growth. Our findings contribute by deepening the understanding of the firm level determinants of employment in developing countries. We analyze our result in the light of a recent but extensive evidence on the relationship between innovation and employment at firm’s level in Uruguay. In particular, we discuss the traditional explanation on the firm’s technological behavior in Latin America, to discuss the effects on employment of integrative innovation strategies in Uruguay. |
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