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The Employment Impact of Different Forms of Innovation: Evidence from Italian Community Innovation Survey

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

No dises1620, DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This paper explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel dataset 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.

Keywords: Technology; innovation; R&D; embodied technological change; employment (search for similar items in EconPapers)
JEL-codes: O31 O33 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2016-11
New Economics Papers: this item is included in nep-cse, nep-ent, nep-eur, nep-ino, nep-sbm and nep-tid
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http://dipartimenti.unicatt.it/dises-dises_wp_16_120.pdf First version, 2016 (application/pdf)

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