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The job creation effect of R&D expenditures

Author

Listed:
  • Francesco Bogliacino

    () (European Commission - JRC)

  • Marco Vivarelli

    () (Università Cattolica, Milano; CSGR-Warwick University; IZA, Bonn)

Abstract

In this study we use a unique database covering 25 manufacturing and service sectors for 15 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures -fostering product innovation- have a job-creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour-friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets.

Suggested Citation

  • Francesco Bogliacino & Marco Vivarelli, 2010. "The job creation effect of R&D expenditures," JRC Working Papers on Corporate R&D and Innovation 2010-04, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:wpaper:201004
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Technological change; corporate R&D; employment; product innovation; GMM-SYS;

    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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