INNOREDES project shows evidence on the role of innovation creating job positions and competitiveness

Members of the Regional Quantitative Analysis Group (AQR) who participated in the project.
Members of the Regional Quantitative Analysis Group (AQR) who participated in the project.
Research
(14/03/2017)

Companies that innovate create more employment and more qualified job positions. In particular, after analyzing the behavior of 10.000 Spanish companies during 2014-2013, it is seen that companies which make more innovations in products have increased job positions by 2% more than the ones who donʼt innovate and have created a 10% more of qualified job positions. This is one of the conclusions of INNOREDES project, carried out during two years by researchers of the research team Regional Quantitative Analysis Group (AQR) of the University of Barcelona. INNOREDES, supported by the BBVA Foundation, covered the study of the role of technological collaboration and participation in international networks regarding innovation in Spanish companies, and the results of this process of innovation in competitiveness, employability and inequality.

Members of the Regional Quantitative Analysis Group (AQR) who participated in the project.
Members of the Regional Quantitative Analysis Group (AQR) who participated in the project.
Research
14/03/2017

Companies that innovate create more employment and more qualified job positions. In particular, after analyzing the behavior of 10.000 Spanish companies during 2014-2013, it is seen that companies which make more innovations in products have increased job positions by 2% more than the ones who donʼt innovate and have created a 10% more of qualified job positions. This is one of the conclusions of INNOREDES project, carried out during two years by researchers of the research team Regional Quantitative Analysis Group (AQR) of the University of Barcelona. INNOREDES, supported by the BBVA Foundation, covered the study of the role of technological collaboration and participation in international networks regarding innovation in Spanish companies, and the results of this process of innovation in competitiveness, employability and inequality.

According to the study, innovation in new products is accompanied by an increase in employability. Innovation in production processes would have a positive impact on the global employment, unlike in other countries where innovation in production processes can lead to a loss of jobs.

The INNOREDES project, which uses different statistical sources -such as the INE Survey, the Technological Innovation Panel (PITEC), Community Innovation Survey, REGPAT data, among others-, also analyzes the effect of innovation regarding exports in companies. In this field, the impact of a certain new product is especially high if the company is located in an area where there was a low tendency to innovate. For example, research shows that if companies in Extremadura tended to innovate on products in a similar way to those in Catalonia, the amount of exporting companies in Extremadura would rise by 13%.

Regarding the effects of innovation in wage inequality, researchers say that in most of the cases, but not always, areas with a higher innovative ability have more inequality too. However, researchers say that innovating activities that led to a higher number of product and process innovation didn't increase inequality.

Another conclusion of the INNOREDES project is that the regional context, for example the amount of innovative companies located in the area, has an impact on the capacity of attracting innovation from a company, especially in small and medium-sized enterprises. The study also proves the importance of operation, be it with other companies or research centers when innovating. This cooperation is especially necessary for companies located in areas with a poor innovation system. For example, in the Balearic Islands, a company that establishes some cooperation has six times a bigger probability of innovation than another without any cooperation. In Madrid, which has a better environment for innovation, this beneficial difference for companies that cooperate is lowered to 2,75 times. Regarding the kind of cooperation, researchers say that international cooperation is more beneficial than the one among close centers and companies. At an international scale, cooperation with the United States has a bigger impact than the one within Europe.