페이스북에 공유 트위터에 공유 구글플러스에 공유 카카오톡에 공유 네이버밴드에 공유
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Writer 관리자 Date 2022-07-02
Subject [J of Economic Policy Reform] Does Innovation by Firms Still Create Jobs even
after the Business Stealing Effect at the Sector Level?
Contents Lim, Jisun, and Keun Lee, "Does Innovation by Firms Still Create Jobs even after the Business Stealing Effect at the Sector Level?," Journal of Economic Policy Reform, 2021. https://doi.org/10.1080/17487870.2022.2076680..

abstract

The relationship between innovation and employment has long been debated. Over time, with the development of rigorous methodology and better measurement and data over the different types of innovations, the recent literature tends to reach a consensus on the positive effect of product innovation and the insignificant effect of process innovation. In contrast, sector-level analysis has been few due to data limitations. Moreover, it has not provided theory-consistent results on whether innovation by firms would still create jobs after the canceling out by a negative or business stealing effect and a positive spillover effect at the sector level. This study addresses this important issue using Korean firm and sector data over a long-term period. After confirming the consensus results by firm-level analyses, this study goes on to produce the results confirming the significant and positive long-term effects of product innovation. This outcome is consistent with the theoretically derived hypothesis that product innovation tends to have a negative (business stealing) effect in the short term but such negative effects will be offset by positive spillover effects in the long term. Further, the research finds no significant effects of process innovation in both short and long termson the net employment growth of a sector.