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.
- Instrumental variables methods
- Process innovation
- Product innovation