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The Employment Effects of Innovation. Evidence from a Sample of Italian Manufacturing Firms

This paper deals with a controversial question: Can innovation create unemployment? Theoretical frameworks and empirical evidences on that topic provide quite different results, depending on the socio-economic and institutional contest where the innovation is introduced and the type of technological change (process vs. product).In our empirical evidence we used a database with information on sales, investments, R&D, product and process innovation and number of employees of about 3000 Italian manufacturing firms. The database covers the period 1992-94. Employment grows in technological advanced industries with respect to traditional industries. The econometric analysis suggests that there are some differences in the behaviour of firms in different regions of Italy. Firms in North East of Italy have better performances than other firms and medium-small firms increased their employment. In particular high R&D expenditures have a negative impact on employment. Big firms spend more in R&D and lose employees in the three years. Investments oriented to increase productive capacity have a positive impact on employment.

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File URL: http://www.ceris.cnr.it/ceris/workingpaper/2000/wp09_00_Giacomo.pdf
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Paper provided by Institute for Economic Research on Firms and Growth - Moncalieri (TO) in its series CERIS Working Paper with number 200009.

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Length: 38 pages Keywords : Innovation and Employment, Impact of Technological Change
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:csc:cerisp:200009
Contact details of provider: Postal: Via Real Collegio, 30 10024 - Moncalieri TO
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  1. 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.
  2. Tor Jakob Klette & Svein Erik Førre, 1995. "Innovation and Job Creation in a Small Open Economy Evidence from Norwegian Manufacturing Plants 1982-92," Discussion Papers 159, Statistics Norway, Research Department.
  3. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-84, April.
  4. David Blanchflower & Simon Burgess, 1996. "New Technology and Jobs: Comparative Evidence from a Two Country Study," CEP Discussion Papers dp0285, Centre for Economic Performance, LSE.
  5. repec:ner:tilbur:urn:nbn:nl:ui:12-5662246 is not listed on IDEAS
  6. Labini, Paolo Sylos, 1990. "Technical progress, unemployment, and economic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 1(1), pages 41-55, June.
  7. Davies, Stephen & Lyons, Bruce, 1996. "Industrial Organization in the European Union: Structure, Strategy, and the Competitive Mechanism," OUP Catalogue, Oxford University Press, number 9780198289739, March.
  8. Vivarelli, Marco & Evangelista, Rinaldo & Pianta, Mario, 1996. "Innovation and employment in Italian manufacturing industry," Research Policy, Elsevier, vol. 25(7), pages 1013-1026, October.
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