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Evaluating Innovation and Labour Market Relationships: The Case of Italy

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Author Info
Luca Pieroni
Fabrizio Pompei

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Abstract

In this paper the link between labour market flexibility and innovation is analysed, paying particular attention to the different technological regimes of economic activities and the different geographical areas of the Italian economy. A dynamic panel data specification is used to assess the endogenous relationship between patents, included as a proxy of the innovation, and job turnover and wages which represent labour market indicators. The results show that higher job turnover only has a significant and negative impact on patent activities in regional sectors of Northern Italy, while a positive and significant impact of blue and white collar wages has been generally found.

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Publisher Info
Paper provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 28/2007.

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Length: 42 pages
Date of creation: 01 Mar 2007
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Handle: RePEc:pia:wpaper:28/2007

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Related research
Keywords: Labour market flexibility; Innovation; Dynamic panel data; Endogeneous relationship;

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Find related papers by JEL classification:
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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    Other versions:
  2. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December. [Downloadable!] (restricted)
    Other versions:
  3. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, vol. 25(3), pages 451-478, May. [Downloadable!] (restricted)
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  13. repec:fth:harver:1473 is not listed on IDEAS
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  20. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2003. "The Skill Bias Effect of Technological and Organisational Change: Evidence and Policy Implications," IZA Discussion Papers 934, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  21. Flaig, Gebhard & Stadler, Manfred, 1994. "Success Breeds Success. The Dynamics of the Innovation Process," Empirical Economics, Springer, vol. 19(1), pages 55-68.
  22. Klaus Zimmermann, 2005. "European Labour Mobility: Challenges and Potentials," De Economist, Springer, vol. 153(4), pages 425-450, December. [Downloadable!] (restricted)
    Other versions:
  23. Jonathan Michie & Maura Sheehan, 2003. "Labour market deregulation, 'flexibility' and innovation," Cambridge Journal of Economics, Oxford University Press, vol. 27(1), pages 123-143, January.
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