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R&D, embodied technological change, and employment: evidence from Italian microdata

Laura Barbieri (), Mariacristina Piva () and Marco Vivarelli ()

Industrial and Corporate Change, 2019, vol. 28, issue 1, 203-218

Abstract: This article explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel data set covering 265 innovative Italian firms over the period 1998–2010. The main outcome from the proposed fixed-effect estimations is a labor-friendly nature of total innovation expenditures; however, this positive effect is barely significant when the sole in-house R&D expenditures are considered and fades away when ETC is included as a proxy for innovation activities. Moreover, the positive employment impacts of innovation activities and R&D expenditures are totally due to firms operating in high-tech industries and large companies, while no job creation due to technical change is detectable in traditional sectors and SMEs.

JEL-codes: O31 O33 (search for similar items in EconPapers)
Date: 2019
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Working Paper: R&D, Embodied Technological Change and Employment: Evidence from Italian Microdata (2016) Downloads
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