How employees are affected by working in R&D-investing firms

Yifei Wang

Industry and Innovation, 2025, vol. 32, issue 7, 747-771

Abstract: Investments in research and development (R&D) are essential for firm success, but how does the experience of working for R&D-investing firms affect individual performance in the labour market? Combining a biennial survey series on R&D investments with a longitudinal matched employer-employee dataset from Statistics Sweden, this study examines the labour market performance of workers in R&D-investing versus non-investing firms. Results show that, on average, highly skilled employees from R&D-investing firms perform better than those from non-investing firms when they switch jobs. This includes higher wage growth and higher probability of career progression. Among this group of employees, no particular interest in entrepreneurial ventures was found. Results of this study strengthen current knowledge of the effects of R&D and provide important implications for policies.

Date: 2025
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DOI: 10.1080/13662716.2024.2420783

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