Uncertainty, flexible labour relations and R&D expenditure

Emanuele Grassi and Marco Di Cintio

MPRA Paper from University Library of Munich, Germany

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: D21 D81 O31 (search for similar items in EconPapers)
Date: 2012-03-26
New Economics Papers: this item is included in nep-ino
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Uncertainty, flexible labour relations and R&D expenditure (2013)
Working Paper: Uncertainty, flexible labour relations and R&D expenditure (2013)
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