Gig Economy and Corporate Innovation: Evidence from the Leading Online Delivery Platform in China

Abstract

This paper investigates how gig economy affects corporate innovation output, by exploiting the staggered entry of the leading online delivery platform, Eleme, into different cities in China. The results show that the innovation output in listed companies increases due to the change of labor structure resulted from the surge of gig work opportunities. The positive effects are stronger for firms with a high degree of labor dependency and in risk scenario with higher buffer value. Furthermore, this paper provides a complete picture of the effect of gig economy on corporate innovation. The entry of gig economy promotes innovation, particularly in new and explorative areas, leading to a shifted composition of patent portfolios.

Keywords: Gig Economy, Corporate Innovation, Patents, Labor Mobility