IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v34y2025i2p302-320.html
   My bibliography  Save this article

Innovation and employment growth in developing countries: the role of market structure

Author

Listed:
  • Karamat Nurillaev
  • Masato Hiwatari

Abstract

This study explores the relationship between product and process innovation and employment growth using a dataset of 17,103 firms in 53 developing countries. Employing instrumental variable (IV) estimation, we find that product innovation plays a significant role in driving employment growth in developing countries. Meanwhile, the impact of process innovation on employment appears to be limited. Moreover, we find that the employment effects of product innovation vary substantially depending on the market structure. In particular, within the manufacturing sector, product innovation has a more pronounced, positive effect on employment growth at firms with fewer competitors than at their counterparts operating in more competitive environments. Similar effects are observed in the service sector, where heterogeneity is prevalent, primarily within comparable industries such as retail and wholesale trade. These findings emphasize that employment effects innovation are not solely firm-determined but also depend on market conditions and competitors.

Suggested Citation

  • Karamat Nurillaev & Masato Hiwatari, 2025. "Innovation and employment growth in developing countries: the role of market structure," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 34(2), pages 302-320, February.
    • Handle: RePEc:taf:ecinnt:v:34:y:2025:i:2:p:302-320
    DOI: 10.1080/10438599.2024.2331196
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2024.2331196
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438599.2024.2331196?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:34:y:2025:i:2:p:302-320. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.