Employment effect of innovation

d'Artis Kancs and Boriss Siliverstovs

Empirical Economics, 2020, vol. 59, issue 3, No 14, 1373-1391

Abstract: Abstract We provide novel evidence about the innovation–employment nexus by decomposing it by R&D intensity in a continuous setup and relaxing the linearity assumption. Using a large international firm-level panel data set for OECD countries and employing a flexible semi-parametric method—the generalised propensity score—allows us to recover the full functional relationship between the R&D-driven innovation and firm employment as well as address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results confirm that the relationship between innovation and employment entails important nonlinearities responsible for significant differences in employment response to innovation at different R&D intensity levels.

Keywords: R&D investment; Employment; Propensity score; Firm-level data (search for similar items in EconPapers)
JEL-codes: C14 C21 F23 J20 J23 O30 O32 O33 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-019-01712-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Employment Effect of Innovation (2019)
Working Paper: Employment Effect of Innovation (2019)
Working Paper: Employment Effect of Innovation (2017)
Working Paper: Employment Effect of Innovation (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:59:y:2020:i:3:d:10.1007_s00181-019-01712-6

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-019-01712-6

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().