The effect of innovation on employment: Mexico and Ecuador
Authors
-
Delia Margarita Vergara Reyes
Universidad Nacional Autónoma de México
https://orcid.org/0000-0002-9582-5499
-
Alex J. Guerrero
Universidad Nacional de Loja
https://orcid.org/0000-0002-1088-3279
-
Guillermo Arenas Díaz
Università Cattolica del Sacro Cuore
https://orcid.org/0000-0003-1192-8093
-
Joost Heijs
Universidad Complutense de Madrid
https://orcid.org/0000-0001-9016-3409
Abstract
This work provides evidence of the effect of innovation on employment in two countries where this impact has not been previously analysed: Mexico and Ecuador. Following the method proposed by Harrison et al. (2014), we find that introducing new products in the market positively affects employment in Mexico and Ecuador. While process innovation tends to destroy jobs in Mexico, it has no effect in the case of Ecuador. The positive impact of product innovation is observed to be greater than the loss of employment caused by process innovation.
