Innovation, employment and market structure: firm level evidence from Turkey

This paper aims to examine the impact of innovation activities on employment for Turkish manufacturing industry with a special focus on market structures. We utilize an endogenous switching technique which accounts for selection bias issues and endogeneity. We show that there exist employment gains from product innovations only for firms operating in highly concentrated sectors, whereas we cannot find evidence for low concentration sectors. Our results point out a negative association between process innovation and employment only for firms operating in high concentration sectors.