Uncertainty, flexible labour relations and R&D expenditure

Marco Di Cintio and Emanuele Grassi

EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels

Abstract: This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R&D) expenditure. Using a panel of Italian manufacturing firms, we find a hump-shaped relationship between workforce flexibility and R&D outlays. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R&D efforts and that flexible labour contracts countervail the adverse effect of uncertainty on R&D.

Keywords: Real options theory; R&D; uncertainty; temporary workers. (search for similar items in EconPapers)
JEL-codes: D22 D81 J41 O31 (search for similar items in EconPapers)
Date: 2013-12-13
New Economics Papers: this item is included in nep-cse and nep-ino
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Citations: View citations in EconPapers (1)

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http://www.eeri.eu/documents/wp/EERI_RP_2013_13.pdf (application/pdf)

Related works:
Working Paper: Uncertainty, flexible labour relations and R&D expenditure (2013)
Working Paper: Uncertainty, flexible labour relations and R&D expenditure (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eei:rpaper:eeri_rp_2013_13

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