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The relationship between public funds, innovation and employment among Argentinean manufacturing firms

Author

Listed:
  • Florencia Fiorentin

    (Universidad Nacional de General Sarmiento (UNGS))

  • Mariano Pereira

    (Universidad Nacional de General Sarmiento (UNGS)
    Centro Interdisciplinario de Estudios de Ciencia, Tecnología e Innovación (CIECTI))

  • Diana Suárez

    (Universidad Nacional de General Sarmiento (UNGS)
    Centro Interdisciplinario de Estudios de Ciencia, Tecnología e Innovación (CIECTI))

Abstract

This paper analyzes the relationship between innovation policy, innovation results and qualified employment at the firm level. The motivation of our paper and the main contribution are to provide evidence about the effects of innovation on qualified employment, and the role that public policy may play in the process. The empirical work is based on Argentinean manufacturer firms included in the National Employment and Innovation Dynamics Survey (in Spanish Encuesta Nacional de Dinámica de Empleo e Innovación), which is a CIS-type survey that covers the period 2010–2012. The econometric strategy follows the Heckman selection model (also known as endogenous treatment-regression model). Results show that innovative firms stand out for better performance than non-innovative ones, since they demand three more skilled-workers per firm than non-innovative firms as a result of their innovative behavior, and the impact is higher at higher levels of firm productivity. Moreover, results suggest a success of the policy related to innovation results, which in turn impact firm performance. In this regard, evidence shows innovation policy plays a role on innovation results and qualified employment, which is beyond the policy design and traditional impact studies.

Suggested Citation

  • Florencia Fiorentin & Mariano Pereira & Diana Suárez, 2020. "The relationship between public funds, innovation and employment among Argentinean manufacturing firms," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 773-791, July.
    • Handle: RePEc:spr:joevec:v:30:y:2020:i:3:d:10.1007_s00191-020-00668-6
    DOI: 10.1007/s00191-020-00668-6
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    References listed on IDEAS

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