Creativity, innovation and employment growth

Abstract

This study examines the effects of creativity, innovation, and job growth in businesses within emerging economies. Based on data from the World Bank Enterprise Surveys and the Innovation Follow-up Surveys, the research examines how innovation can both create and replace jobs, by considering whether the time allocated for employee creativity affects job growth. The analysis employs the Huber-White Sandwich Estimator and Heckman's two-stage method to address potential biases and ensure highly significant results. The findings indicate that businesses encouraging creativity and innovation tend to have higher job growth rates. These findings offer important understanding for policymakers and business leaders to leverage innovation for economic development and job creation