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Is R&D Good for Employment? Microeconometric Evidence from the EU

Mariacristina Piva () and Marco Vivarelli ()

No 10581, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Using a unique firm-level database comprising the top European R&D investors over the period 2002-2013 and running LSDVC estimates, this study finds a significant labour-friendly impact of R&D expenditures. However, this positive employment effect appears limited in magnitude and entirely due to the medium-and high-tech sectors, while no effect can be detected in the low-tech industries. From a policy point of view, this outcome is supporting the EU2020 strategy, but – taking into account that most of European economies are specialized in low-tech activities – is also worrying in terms of future perspectives of the European labour market.

Keywords: R&D; innovation; employment; firm-level analysis; EU (search for similar items in EconPapers)
JEL-codes: O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-ino, nep-sbm and nep-tid
Date: 2017-02
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Published as 'Is Innovation Destroying Jobs? Firm-Level Evidence from the EU' in: Sustainability, 2018, 10(4), 1279

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