This paper compile s and analyze s several sources of information to shed light on the relationship between innovation and employment growth in the manufacturing industry in Chile in the last 15 years. Our overall conclusion s are that process innovation is generally not found to be a relevant determinant of employment growth, and that product innovation is usually positively associated with an expansion in employment. These results seem to be similar regardless of firm size and ho ld for both low - and high - tech industries. Our findings reveal that in - house R&D ( make only strategy) is positively related with employment growth . However, this is not the case for the sample of small firms. With respect to employment growth by types of w orkers, skilled vs. unskilled, the evidence is less robust. However, in - house R& D appears to favor employment growth for both types of workers in low - tech industries.

Inter-American Development Bank
Incae Business School

Cuevas, C, Benavente, J.M., Campusano, R., & Alvarez, R. (2011). Employment Generation, Firm Size, and Innovation in Chile. Inter-American Development Bank.