The effects of innovation on employment in developing countries: evidence from enterprise surveys

This article sheds light on the direct impact of technological as well as organizational innovation on firm-level employment growth using a global sample of over 15,000 firms in developing countries. The main findings suggest that new sales associated with product innovation are produced, on average, with just as much or higher levels of labor intensity than old products. However, the additionality to employment decreases with productivity, proxied by income per capita. In line with other studies, process innovation does not impact the additionality of employment, but there is some evidence of automation reducing the impact of product innovation on employment.