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Public R&D Subsidies and Employment Growth - Microeconomic Evidence from Finnish Firms

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Author Info
Heli Koski

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Abstract

ABSTRACT : This study empirically explores whether the public financial support for entrepreneurial R&D affects employment growth at the firm level. The data from the Finnish companies suggests that the firms that have received public R&D funding have not generally witnessed any greater employment growth than other companies. However, we find that the public R&D support targeted to the certain types of R&D activities notably contribute to the creation of new jobs : employment in those firms that have received public funding for the R&D projects targeted to the new business areas has clearly grown relatively more than in other companies. The relationship between the firm’s total innovation and employment growth is not statistically significant.

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Publisher Info
Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1143.

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Length: 24 pages
Date of creation: 20 Aug 2008
Date of revision:
Handle: RePEc:rif:dpaper:1143

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Related research
Keywords: Public R&D subsidies; technology policy; employment growth;

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2007. "Employment, innovation, and productivity: Evidence from italian microdata," Temi di discussione (Economic working papers) 622, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  2. Peters, Bettina, 2004. "Employment Effects of Different Innovation Activities : Microeconometric Evidence," ZEW Discussion Papers 04-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  3. Heli Koski, 2008. "Public R&D Funding and Entrepreneurial Innovation," Discussion Papers 1142, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-59, May.
  5. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December. [Downloadable!] (restricted)
  6. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July. [Downloadable!] (restricted)
  7. Tor Jakob Klette and Svein Erik Førre, 1995. "Innovation and Job Creation in a Small Open Economy
    Evidence from Norwegian Manufacturing Plants 1982-92    ," Discussion Papers 159, Research Department of Statistics Norway.
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This page was last updated on 2009-11-24.

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