| By: |
Francesco Bogliacino (European Commission, Joint Research Center - Institute for Perspective Technological Studies, Sevilla & Centro de Estudios Para America Latina y el Caribe-Universidad EAFIT, Rise Group);
Mariacristina Piva (Università Cattolica, Milano and Piacenza);
Marco Vivarelli (Università Cattolica, Milano and Piacenza & SPRU-University of Sussex & IZA, Bonn) |
| Abstract: |
The aim of this paper is to test the employment effect of business R&D
expenditures, using a unique longitudinal database covering 677 European
manufacturing and service firms over the period 1990-2008. Main result from
the whole sample dynamic LSDVC (Least Squared Dummy Variable Corrected)
estimate is the labour-friendly nature of companies’ R&D, the coefficient of
which turns out to be statistically significant, although not very large in
magnitude. However, the positive and significant job creation effect of R&D
expenditures is detectable in services and high-tech manufacturing but absent
in the more traditional manufacturing sectors. This means that we should not
expect positive employment effects from increasing R&D in the majority of
industrial sectors. This evidence should be kept in mind by European
innovation policy makers having employment as one of their specific aims. |
| Keywords: |
Innovation, employment, manufacturing, services, LSDVC |
| JEL: |
O33 |
| Date: |
2011 |
| URL: |
http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/9/doc2011-20&r=tid |