Competition and Innovation-Driven Inclusive Growth

Dutz, Mark A. ; Kessides, Ioannis ; O'Connell, Stephen ; Willig, Robert D.

关键词: ACCESS TO INFORMATION;    ACCOUNTS PAYABLE;    AGE GROUP;    AGGREGATE EMPLOYMENT;    BORROWING;   

DOI  :  10.1596/1813-9450-5852
RP-ID  :  WPS5852

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The paper investigates the strength ofinnovation-driven employment growth, the role of competitionin stimulating and facilitating it, and whether it isinclusive. In a sample of more than 26,000 manufacturingestablishments across 71 countries (both OECD anddeveloping), the authors find that firms that innovate inproducts or processes, or that have attained higher totalfactor productivity, exhibit higher employment growth thannon-innovative firms. The strength of firms'innovation-driven employment growth is significantlypositively associated with the share of the firms'workforce that is unskilled, debunking the conventionalwisdom that innovation-driven growth is not inclusive inthat it is focused on jobs characterized by higher levels ofqualification. They also find that young firms have higherpropensities for product or process innovation in countrieswith better Doing Business ranks (both overall and ranks forconstituent components focused on credit availability andproperty registration). Firms generally innovate more andshow greater employment growth if they are exposed to moreinformation (through internet use and membership in businessorganizations) and are exporters. The empirical resultssupport the policy propositions that innovation is apowerful driver of employment growth, that innovation-drivengrowth is inclusive in its creation of unskilled jobs, andthat the underlying innovations are fostered by apro-competitive business environment providing ready accessto information, financing, export opportunities, and otheressential business services that facilitate the entry andexpansion of young firms.