Technological Activity and Employment in a Panel of UK Firms

Christine Greenhalgh, M. Longland and D. Bosworth

Scottish Journal of Political Economy, 2001, vol. 48, issue 3, 260-282

Abstract: We investigate the relationship between technological activity, proxied by R&D, patents, and trade marks, and employment for a panel of British production firms from 1987 to 1994. We modify standard derived demand for labour to include technology variables. We find employment is fostered by R&D expenditure and UK patent publications, ceteris paribus on factor costs and current sales. The employment impact of R&D is bigger in high technology sectors, but employment increase from UK patenting activity is bigger in mature technology sectors. In further analysis of persistent differences (the estimated firm fixed effects) UK trade marks and US patents are also positively associated with employment.

Date: 2001
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