Impact of broadband uses on labour demand derived from the innovative behaviour of firms in creative industries

Abstract

This research explores the effect of the implementation and intensive use of broadband on the labour demand induced by the innovative behaviour of Peruvian firms of creative industries (CI) in comparison to Knowledge Intensive Business Services (KIBS) and Services companies. The 2015 Business National Survey database was used. It was found that both productive and intensive uses of broadband encourage labour demand as a reflection of successful innovations' introductions, in the three analysed industries (except for CI's second use). In contrast, the market-oriented uses of broadband reduce the likelihood of hiring staff as corollary of innovative behaviour among the KIBS and CI firms. In addition, among CIs firms, the study found that only the productive uses of broadband -in line with the intrinsic characteristics of its own knowledge base- could promote processes that lead to successful innovation results and positive effects on labour demand to a greater extent than services and KIBS firms. The results highlight the feasibility of stimulating innovation processes and employment through information and communications technology policies among strategic service sub-sectors as creative industries in emerging digital ecosystems.