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Beyond R&D: the role of embodied technological change in affecting employment

Author

Listed:
  • Gabriele Pellegrino

    (EPFL)

  • Mariacristina Piva

    (Università Cattolica del Sacro Cuore)

  • Marco Vivarelli

    (Università Cattolica del Sacro Cuore
    UNU-MERIT
    IZA)

Abstract

In this work, we test the employment impact of distinct types of innovative investments using a representative sample of Spanish manufacturing firms over the period 2002–2013. Our GMM-SYS estimates generate various results, which are partially in contrast with the extant literature. Indeed, estimations carried out on the entire sample do not provide statistically significant evidence of the expected labor-friendly nature of innovation. More in detail, neither R&D nor investment in innovative machineries and equipment (the so-called embodied technological change, ETC) turn out to have any significant employment effect. However, the job-creation impact of R&D expenditures becomes highly significant when the focus is limited to the high-tech firms. On the other hand - and interestingly - ETC exhibits its labor-saving nature when SMEs are singled out.

Suggested Citation

  • Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2019. "Beyond R&D: the role of embodied technological change in affecting employment," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1151-1171, September.
    • Handle: RePEc:spr:joevec:v:29:y:2019:i:4:d:10.1007_s00191-019-00635-w
    DOI: 10.1007/s00191-019-00635-w
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    9. Giacomo Damioli & Vincent Van Roy & Daniel Vertesy & Marco Vivarelli, 2021. "Detecting the labour-friendly nature of AI product innovation," DISCE - Quaderni del Dipartimento di Politica Economica dipe0017, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    10. Luigi Aldieri & Concetto Paolo Vinci, 2018. "Green Economy and Sustainable Development: The Economic Impact of Innovation on Employment," Sustainability, MDPI, vol. 10(10), pages 1-11, October.
    11. Damioli, Giacomo & Van Roy, Vincent & Vertesy, Daniel & Vivarelli, Marco, 2021. "Will the AI revolution be labour-friendly? Some micro evidence from the supply side," MERIT Working Papers 2021-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Rajeev K. Goel & Michael A. Nelson, 2022. "Employment effects of R&D and process innovation: evidence from small and medium-sized firms in emerging markets," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 97-123, March.
    13. Chongryol Park & Ronald McQuaid & Jiwoon Lee & Seungjin Kim & Insuk Lee, 2019. "The Impact of Job Retention on Continuous Growth of Engineering and Informational Technology SMEs in South Korea," Sustainability, MDPI, vol. 11(18), pages 1-19, September.
    14. Porath, Daniel & Nabachwa, Sarah & Agasha, Ester & Kijjambu, Nsambu Frederick, 2021. "Innovation and employment in Sub-Saharan Africa," UASM Discussion Paper Series 10/2021, University of Applied Sciences Mainz.
    15. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    16. Başak Dalgıç & Burcu Fazlıoğlu & Aytekin Güven, 2023. "Innovation, employment and market structure: firm level evidence from Turkey," Empirical Economics, Springer, vol. 65(3), pages 1385-1407, September.
    17. Aldieri, Luigi & Grafström, Jonas & Paolo Vinci, Concetto, 2020. "Job Creation in the Wind Power Sector Through Marshallian and Jacobian Knowledge Spillovers," Ratio Working Papers 340, The Ratio Institute.
    18. Luigi Aldieri & Jonas Grafström & Concetto Paolo Vinci, 2021. "The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector," Energies, MDPI, vol. 14(14), pages 1-16, July.
    19. Destefanis, Sergio & Rehman, Naqeeb Ur, 2023. "Investment, innovation activities and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 474-490.
    20. Kerstin Hotte & Melline Somers & Angelos Theodorakopoulos, 2022. "Technology and jobs: A systematic literature review," Papers 2204.01296, arXiv.org.

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    More about this item

    Keywords

    Innovation; R&D; Embodied technological change; Employment; GMM-SYS;
    All these keywords.

    JEL classification:

    • 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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