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Employment Effect of Innovation

d'Artis Kancs and Boriss Siliverstovs

No 2019-02, Working Papers from Joint Research Centre, European Commission (Ispra site)

Abstract: We provide a 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 non-linearities 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)
New Economics Papers: this item is included in nep-cse, nep-ino, nep-sbm and nep-tid
Date: 2019-04
References: View references in EconPapers View complete reference list from CitEc
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Published by Publications office of the European Union, 2019

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http://publications.jrc.ec.europa.eu/repository/bi ... ct_of_innovation.pdf

Related works:
Working Paper: Employment Effect of Innovation (2017) Downloads
Working Paper: Employment Effect of Innovation (2015) Downloads
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