Innovation and employment: A firm level analysis with European R&D Scoreboard data

Francesco Bogliacino

Economia, 2014, vol. 15, issue 2, 141_154

Abstract: This article analyzes the microeconomic relation between innovation and employment, using company data from R&D Scoreboard for Europe covering 2000–2008. A reduced form equation in which R&D can account for both product and process innovation is estimated. The existence of non-constant elasticities is assessed, due to the combination of efficient scale and decreasing return to R&D: in our empirical estimates the scale effect tends to prevail for a given R&D intensity generating an increasing relation between total turnover and employment. These results have important implications for policymakers: innovation supporting policies should be correctly tailored and monitored since the results depend on the characteristics of the benefiting firms. Moreover, R&D intensity on GDP should be managed with care if taken as a policy target, given that the denominator is endogenous and non-linearly dependent on research expenditure.

Keywords: Technological change; Corporate R&D; Employment; Panel data (search for similar items in EconPapers)
JEL-codes: J20 O33 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (29)

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Related works:
Working Paper: Innovation and Employment: A firm level analysis with European R&D Scoreboard data (2010)
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