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Technology and employment: the job creation effect of business R&D

Author

Listed:
  • Francesco Bogliacino

    (Universidad Nacional de Colombia, Bogota`, Colombia)

  • Mariacristina Piva

    (Dipartimento di Scienze Economiche e Sociali, Universita` Cattolica del Sacro Cuore, Piacenza)

  • Marco Vivarelli

    (Istituto di Politica Economica, Universita` Cattolica del Sacro Cuore, Milano)

Abstract

After discussing theory regarding the consequences of technological change on employment, our aim is to test the possible job creation effect of business R&D expenditures, using a unique longitudinal database covering 677 European firms (1990-2008). The main outcome from the dynamic LSDVC (Least Squared Dummy Variable Corrected) estimate is the labour-friendly nature of companies’ R&D, the coefficient of which turns out to be statistically significant. However, the positive impact of R&D on employment is only detectable in services and high-tech manufacturing. This is something that should be borne in mind by European policy makers having employment as one of their aims.

Suggested Citation

  • Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2014. "Technology and employment: the job creation effect of business R&D," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 122(3), pages 239-264.
    • Handle: RePEc:vep:journl:y:2014:v:122:i:3:p:239-264
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    Cited by:

    1. Guillermo Arenas Díaz & Alex J. Guerrero & Joost Heijs, 2024. "The effects of product and process innovation on employment: a meta-regression analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(1), pages 35-68, March.
    2. Heijs, Joost & Arenas Díaz, Guillermo & Vergara Reyes, Delia Margarita, 2019. "Impact of innovation on employment in quantitative terms: review of empirical literature based on microdata," MPRA Paper 95326, University Library of Munich, Germany.
    3. Becker, Lasse, 2015. "Effectiveness of public innovation support in Europe: Does public support foster turnover, employment and labour productivity?," University of Göttingen Working Papers in Economics 236, University of Goettingen, Department of Economics.
    4. 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.
    5. Borsato, Andrea & Lorentz, André, 2023. "The Kaldor–Verdoorn law at the age of robots and AI," Research Policy, Elsevier, vol. 52(10).
    6. Guillermo Arenas Díaz & Andrés Barge-Gil & Joost Heijs & Alberto Marzucchi, 2025. "The effect of external innovation on firm employment," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 34(1), pages 44-69, January.

    More about this item

    Keywords

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    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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