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An Analysis of Employment Effects of Non-Technological Innovations: Manufacturing vs. Service Firms  

Mun, Sung-Bae (국민대학교 국제통상학과)
Publication Information
Journal of Korea Technology Innovation Society / v.22, no.3, 2019 , pp. 283-306 More about this Journal
Abstract
This study empirically analyzes the effects of non-technical innovation activities on employment growth. The study estimates the effects of organizational innovation and marketing innovation on employment growth using the data on manufacturing and service firms from the 2016 Korea Innovation Survey. The estimation results suggest that the detailed types of organizational innovation and marketing innovation have different effects on employment growth. In the case of organizational innovation, changes in business practices and changes in workplace organization do not have any significant impact on employment growth in both manufacturing and service firms. On the other hand, new external relationships have a positive employment effect in the manufacturing firms. Marketing innovations such as new methods in product placement and product promotion also have an effect of increasing employment in the manufacturing sector. However, the study finds that marketing innovation does not have any positive employment effect in the service firms.
Keywords
Employment; Non-technological Innovation; Organizational Innovation; Marketing Innovation; Manufacturing; Services;
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