The impact of R&D on employment in Europe: a firm-level analysis

Francesco Bogliacino, Mariacristina Piva and Marco Vivarelli ()

No 2011/20, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: The aim of this paper is to test the employment effect of business R&D expenditures, using a unique longitudinal database covering 677 European manufacturing and service firms over the period 1990-2008. Main result from the whole sample dynamic LSDVC (Least Squared Dummy Variable Corrected) estimate is the labour-friendly nature of companies’ R&D, the coefficient of which turns out to be statistically significant, although not very large in magnitude. However, the positive and significant job creation effect of R&D expenditures is detectable in services and high-tech manufacturing but absent in the more traditional manufacturing sectors. This means that we should not expect positive employment effects from increasing R&D in the majority of industrial sectors. This evidence should be kept in mind by European innovation policy makers having employment as one of their specific aims.

Keywords: Innovation; employment; manufacturing; services; LSDVC (search for similar items in EconPapers)
JEL-codes: O33 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011
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Citations: View citations in EconPapers (1)

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Working Paper: The impact of R&D on employment in Europe: A firm-level analysis (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2011-20

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