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Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth

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  • Moutinho, Ricardo
  • Au-Yong-Oliveira, Manuel
  • Coelho, Arnaldo
  • Manso, José Pires

Abstract

The emergence of the so-called “European Paradox” shows that increasing Governmental R&D Investment is far from being a ‘panacea’ for stagnant growth. Surprisingly, Governmental R&D Employment does not contribute to ‘mass-market’ employment, despite its important role in reducing Youth-Unemployment. Despite the negative side-effect of Governmental R&D Employment on economic growth, University R&D Employment appears to have a quite important role in reducing Unemployment, especially Youth-Unemployment, while it also does not have a downside in terms of economic growth. Technological Capacity enhancement is the most effective instrument for reducing Youth-Unemployment and is a policy with a quite robust effect regarding sustainable economic development.

Suggested Citation

  • Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
  • Handle: RePEc:eee:soceps:v:50:y:2015:i:c:p:45-58
    DOI: 10.1016/j.seps.2015.04.001
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