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Developing Employment Effects Of Innovations: Microeconometric Evidence From Taiwan

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  • Chih‐Hai YANG
  • Chun‐Hung A. LIN

Abstract

This paper aims to identify the effects of innovation on employment and labor composition in Taiwan. Using a new and detailed firm‐level data set, the empirical results determine that innovations, measured by R&D investments or patent counts, have a positive impact on employment. Both of the estimated employment effects of product and process innovations are overall significantly positive. Although the effects of process innovations differ between high and low R&D‐intensive industries, the process innovation tends to expand the firms’ output and then increase employment for high R&D‐intensive industries. However, it frequently results in laborsavings in terms of production work and reduces jobs in low R&D‐intensive industries. Moreover, technological innovations are found to be non‐neutral, leading to a shift in labor composition in favor of skilled and more educated workers.

Suggested Citation

  • Chih‐Hai YANG & Chun‐Hung A. LIN, 2008. "Developing Employment Effects Of Innovations: Microeconometric Evidence From Taiwan," The Developing Economies, Institute of Developing Economies, vol. 46(2), pages 109-134, June.
    • Handle: RePEc:bla:deveco:v:46:y:2008:i:2:p:109-134
    DOI: 10.1111/j.1746-1049.2008.00059.x
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    Cited by:

    1. Ugur, Mehmet & Awaworyi, Sefa & Solomon, Edna, 2016. "Technological innovation and employment in derived labour demand models: A hierarchical meta-regression analysis," MPRA Paper 73557, University Library of Munich, Germany.
    2. Mariacristina Piva & Marco Vivarelli, 2018. "Innovation, jobs, skills and tasks: a multifaceted relationship," DISCE - Quaderni del Dipartimento di Politica Economica dipe0001, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Waheed, Abdul, 2012. "Employment effect of innovation: microdata evidence from Bangladesh and Pakistan," MERIT Working Papers 2012-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Pellegrino, Gabriela & Piva, Mariacristina & Vivarelli, Marco, 2018. "R&D, embodied technological change and employment: Evidence from Spain," MERIT Working Papers 2018-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    6. Paola Azar, 2020. "Politics as a determinant of primary school provision The case of Uruguay, 1914-1954," Documentos de Trabajo (working papers) 20-07, Instituto de Economía - IECON.
    7. Abdul Waheed, 2017. "The Employment Effect of Innovation: Evidence from Bangladesh and Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 56(2), pages 105-126.
    8. Heijs, Joost & Arenas Díaz, Guillermo & Vergara Reyes, Delia Margarita, 2019. "Impact of innovation on employment in quantitative terms: review of empirical literature based on microdata," MPRA Paper 95326, University Library of Munich, Germany.
    9. Laura Barbieri & Mariacristina Piva & Marco Vivarelli, 2019. "R&D, embodied technological change, and employment: evidence from Italian microdata," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(1), pages 203-218.
    10. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2019. "Beyond R&D: the role of embodied technological change in affecting employment," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1151-1171, September.
    11. Carlos Bianchi & Hugo Laguna, 2020. "Firm’s innovation strategies and employment: new evidence from Uruguay," Documentos de Trabajo (working papers) 20-06, Instituto de Economía - IECON.
    12. Kristina Matuzeviciute & Mindaugas Butkus & Akvile Karaliute, 2017. "Do Technological Innovations Affect Unemployment? Some Empirical Evidence from European Countries," Economies, MDPI, vol. 5(4), pages 1-19, December.
    13. Başak Dalgıç & Burcu Fazlıoğlu & Aytekin Güven, 2023. "Innovation, employment and market structure: firm level evidence from Turkey," Empirical Economics, Springer, vol. 65(3), pages 1385-1407, September.
    14. Laura Barbieri & Mariacristina Piva & Marco Vivarelli, 2016. "The Employment Impact of Different Forms of Innovation: Evidence from Italian Community Innovation Survey," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1620, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. Mehmet Ugur & Sefa Awaworyi Churchill & Edna Solomon, 2018. "Technological Innovation And Employment In Derived Labour Demand Models: A Hierarchical Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 50-82, February.
    16. Pellegrino, Gabriele & Piva, Mariacristina & Vivarelli, Marco, 2017. "Are Robots Stealing Our Jobs?," IZA Discussion Papers 10540, Institute of Labor Economics (IZA).
    17. Dam Duc Le, 2023. "Gthe Impact Of Technological Innovation On Labor Structure: Evidence From Vietnam Smes," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 251-288, May.

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