Using data from 2002 Korean Innovation Survey, the study investigates the employment effects of innovation activities in Korean manufacturing firms. In particular, the study examines how the employment effects of innovation activities in information a...
Using data from 2002 Korean Innovation Survey, the study investigates the employment effects of innovation activities in Korean manufacturing firms. In particular, the study examines how the employment effects of innovation activities in information and communications technology(ICT) firms are different from those in non-ICT firms. The estimation results suggest that product innovation is strongly associated with employment growth. Moreover, the employment effects of product innovation are not significantly different in between ICT and non-ICT firms. On the other hand, the net effect of process innovation on employment growth turns out to be insignificant for both ICT and non-ICT firms because displacement effects offset compensation effects.