Technological innovation and the demand for labor by firms in expansion and recession

Ortiz, J. (Universidad de Zaragoza) ; Salas Fumas, V. (Universidad de Zaragoza)

Resumen: With firm data from the Spanish Community Innovation Survey (CIS) for the period 2003-2014, we find a positive and significant effect of innovation in the demand for labor when firms introduce product and process innovations in the same time period. The effect of innovation on the demand for labor is countercyclical, higher in the recession, after 2008, than in the expansion, before 2008, but the probability that firms innovate in product and process is counter-cyclical, i.e. lower in the recession. Altogether, the elasticity of the demand for labor to the probability that firms introduce product and process innovations remains stable throughout the sample period, at around 0.035. Innovation contributes to stabilize average employment during the cycle, more so when the innovation is in product, alone or together with process, than when it is only in process. These results are broadly consistent with product and process innovations shifting firms'' demand and production functions upwards, but differentially in expansions (less product market competition) than in contractions (more competition).

Idioma: Inglés

DOI: 10.1080/10438599.2019.1629535

Año: 2019

Publicado en: Economics of innovation and new technology 29, 4 (2019), 417-440
ISSN: 1043-8599

Factor impacto JCR: 1.563 (2019)

Categ. JCR: ECONOMICS rank: 167 / 371 = 0.45 (2019) - Q2 - T2

Factor impacto SCIMAGO: 0.923 - Management of Technology and Innovation (Q1) - Economics, Econometrics and Finance (miscellaneous) (Q1)

Financiación: info:eu-repo/grantAgreement/ES/DGA/S42-17R-CREVALOR
Financiación: info:eu-repo/grantAgreement/ES/MINECO/ECO2017-86305-C4-3-R

Tipo y forma: Artículo (Versión definitiva)

Área (Departamento): Área Organización de Empresas (Dpto. Direcc.Organiza.Empresas)