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

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  • Francesco Bogliacino

    () (Fundación Universitaria Konrad Lorenz, Bogotá - Universidad Nacional de Colombia, Bogotá)

  • Mariacristina Piva

    () (DISCE, Università Cattolica)

  • Marco Vivarelli

    () (DISCE, Università Cattolica)

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," DISCE - Quaderni dell'Istituto di Politica Economica ispe0069, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  • Handle: RePEc:ctc:serie5:ispe0069
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    References listed on IDEAS

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    Cited by:

    1. Becker, Lasse, 2015. "Effectiveness of public innovation support in Europe: Does public support foster turnover, employment and labour productivity?," Center for European, Governance and Economic Development Research Discussion Papers 236, University of Goettingen, Department of Economics.

    More about this item

    Keywords

    Innovation; Employment; Manufacturing; Services; LSDVC;

    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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