Paper Details

Name: Parneet Kaur
Country: India

Year: 2022
Volume: Volume-9, Issue-2 (July-December)
Page Number: 40-65

ABSTRACT
This Study analyzes the structural effects of Innovation on the Employment of both skilled and unskilled workers in the case of Small and Medium Enterprises (SMEs) in India. The study is based on different types of Product and Process innovation and its impact on employment. The study further measures how employment dynamics varies for high technology and low technology firms with different kinds of innovations. It is based on a
follow-up survey on Innovation by the World Bank. Using logistic regression this paper found that for Product Innovation involving completely new products and designing product with different inputs lead to the hiring of a skilled and unskilled worker. However, Product innovation focused on better quality does lead to the layoff of unskilled workers. For Process Innovation, innovations related to increasing the speed of delivery, decreasing the cost of
production and to comply with regulation lead to the hiring of skilled and unskilled workers. Process Innovation reducing waste led to the hiring of unskilled workers. However, innovations leading to increased flexibility and speed of production lead to the layoff of unskilled workers. Technology-wise high technology firms hire for a new function for product Innovation. However, for process innovation high-tech firms hire to increase production, speed for delivery, decreased cost of production, and comply with regulations.
Low-tech firms hire to comply with regulations only.

Keywords: Product Innovation, Process Innovation, Employment, Skilled workers, Unskilled workers, High-tech firms, Low-tech firms.