OECD Science, Technology and Industry Working Papers
The OECD Directorate for Science, Technology and Innovation (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.
- Forthcoming titles
- ISSN: 18151965 (online)
- https://doi.org/10.1787/18151965
Imports, Innovation and Employment after Crisis
Evidence from a Developing Country
Imports are often perceived as a threat to employment. However, access to imported intermediate inputs can be essential to stimulate innovation and generate employment. We investigate this question based on a unique dataset of Ecuadorian manufacturing firms, their final products and intermediate inputs. Using fixed effects instrumental variable estimation we find that firms' importing activities lead to product innovation, increase firms' product scope, reduce production costs and create employment. These impacts arise not only for producers in high-tech industries but also for firms in more traditional sectors. Employment effects are much stronger several years after the country's economic crisis.
Keywords: employment, product scope, multi-product firms, Ecuador, intermediate inputs, product innovation, imports, input production costs, economic crisis
JEL:
D22: Microeconomics / Production and Organizations / Firm Behavior: Empirical Analysis;
O12: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Microeconomic Analyses of Economic Development;
O54: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Economywide Country Studies: Latin America; Caribbean;
L6: Industrial Organization / Industry Studies: Manufacturing;
O30: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Innovation; Research and Development; Technological Change; Intellectual Property Rights: General;
F16: International Economics / Trade / Trade and Labor Market Interactions
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