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Employment Impact Of Firms' Innovation: What Is The Role Of Regional Institutions? Evidence From Italy

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  • Luca VOTA

    (Ph.D student, Department of Economics and Statistics (DISES) of the University of Salerno, Italy)

Abstract

Employment effect of firms’ innovation is a widely studied topic at both cross-country and national level, while still few contributions deals with the local dimension. Moreover, the role of the institutional factors is still unexplored. In this manuscript, the author estimates the impact of private firms’ R&D spending, institutional quality and their interaction on the employment rate of the Italian regions. To accomplish his task, the author proposes two dynamic panel models and computes them through the Ordinary Least Squares (OLS), Fixed effects (FE) and System Generalized Method of Moments (GMM-SYS) regression tecniques. The obtained results suggest that the employment impact of firms’ innovation is negative, while the ability of the regional institutions to attract, support and cooperate with the innovative companies and the R&D investment programs jointly financed by regional governments and private firms positively affect the employment rate. The author has deduced appropriate policy implications from the provided evidence.

Suggested Citation

  • Luca VOTA, 2022. "Employment Impact Of Firms' Innovation: What Is The Role Of Regional Institutions? Evidence From Italy," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 11-24, June.
    • Handle: RePEc:hrs:journl:v:xiv:y:2022:i:2:p:11-24
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    More about this item

    Keywords

    Employment impact of firms' innovation; R&D activity; Regional Economics;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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