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R&D, embodied technological change, and employment: evidence from Italian microdata

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  • Laura Barbieri
  • Mariacristina Piva
  • Marco Vivarelli

Abstract

This article explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel data set covering 265 innovative Italian firms over the period 1998–2010. The main outcome from the proposed fixed-effect estimations is a labor-friendly nature of total innovation expenditures; however, this positive effect is barely significant when the sole in-house R&D expenditures are considered and fades away when ETC is included as a proxy for innovation activities. Moreover, the positive employment impacts of innovation activities and R&D expenditures are totally due to firms operating in high-tech industries and large companies, while no job creation due to technical change is detectable in traditional sectors and SMEs.

Suggested Citation

  • Laura Barbieri & Mariacristina Piva & Marco Vivarelli, 2019. "R&D, embodied technological change, and employment: evidence from Italian microdata," Industrial and Corporate Change, Oxford University Press, vol. 28(1), pages 203-218.
  • Handle: RePEc:oup:indcch:v:28:y:2019:i:1:p:203-218.
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    Cited by:

    1. Giovanni Dosi & Mariacristina Piva & Maria Enrica Virgillito & Marco Vivarelli, 2019. "Technology and employment in a vertically connected economy: a model and an empirical test," DISCE - Quaderni del Dipartimento di Politica Economica dipe0005, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Giovanni Dosi & Mariacristina Piva & Maria Enrica Virgillito & Marco Vivarelli, 2019. "Embodied and disembodied technological change: the sectoral patterns of job-creation and job-destruction," LEM Papers Series 2019/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. repec:gam:jsusta:v:10:y:2018:i:4:p:1279-:d:142412 is not listed on IDEAS
    4. Mariacristina Piva & Marco Vivarelli, 2018. "Is Innovation Destroying Jobs? Firm-Level Evidence from the EU," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-16, April.
    5. Giacomo Domini & Marco Grazzi & Daniele Moschella & Tania Treibich, 2019. "Threats and opportunities in the digital era: automation spikes and employment dynamics," LEM Papers Series 2019/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. repec:gam:jsusta:v:10:y:2018:i:2:p:463-:d:131183 is not listed on IDEAS
    7. repec:gam:jsusta:v:10:y:2018:i:10:p:3541-:d:173358 is not listed on IDEAS

    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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