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The job creation effect of R&D expenditures

Author

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  • 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

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    Citations

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    Cited by:

    1. Ugur, Mehmet & Awaworyi, Sefa & Solomon, Edna, 2016. "Technological innovation and employment in derived labour demand models: A hierarchical meta-regression analysis," MPRA Paper 73557, University Library of Munich, Germany.
    2. Van Roy, Vincent & Vertesy, Daniel & Vivarelli, Marco, 2015. "Innovation and Employment in Patenting Firms: Empirical Evidence from Europe," IZA Discussion Papers 9147, Institute for the Study of Labor (IZA).
    3. repec:gam:jsusta:v:10:y:2018:i:4:p:1279-:d:142412 is not listed on IDEAS
    4. Ilina Srour & Erol Taymaz & Marco Vivarelli, 2014. "Globalization, Technology and Skills: Evidence from Turkish Longitudinal Microdata," ERC Working Papers 1405, ERC - Economic Research Center, Middle East Technical University, revised Jun 2014.
    5. Mariacristina Piva & Marco Vivarelli, 2018. "Is Innovation Destroying Jobs? Firm-Level Evidence from the EU," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-16, April.
    6. Marco Vivarelli, 2016. "The middle income trap: a way out based on technological and structural change," Economic Change and Restructuring, Springer, vol. 49(2), pages 159-193, August.
    7. Falk, Martin & Hagsten, Eva, 2017. "Employment Impacts of Market Novelty Sales: Evidence for Nine European Countries," Ratio Working Papers 293, The Ratio Institute.
    8. D'Artis Kancs & Boriss Siliverstovs, 2015. "Employment Effect of Innovation," JRC Working Papers on Corporate R&D and Innovation 2015-07, Joint Research Centre (Seville site).
    9. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    10. Vincent Van Roy & Daniel Vertesy & Marco Vivarelli, 2015. "The Employment Impact of Innovation: Evidence from European Patenting Companies," DISCE - Quaderni dell'Istituto di Politica Economica ispe0075, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    11. Roberto Santolamazza & Dejan Pejcic, 2016. "Manifattura additiva: quale ruolo per il "capitale umano"?," ECONOMIA E SOCIETÀ REGIONALE, FrancoAngeli Editore, vol. 2016(2), pages 113-144.
    12. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute for the Study of Labor (IZA).
    13. Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute for the Study of Labor (IZA).
    14. Piva, Mariacristina & Vivarelli, Marco, 2017. "Technological Change and Employment: Were Ricardo and Marx Right?," IZA Discussion Papers 10471, Institute for the Study of Labor (IZA).
    15. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "Job Creation Effects of R&D Expenditures: Are High-tech Sectors the Key?," JRC Working Papers on Corporate R&D and Innovation 2011-10, Joint Research Centre (Seville site).
    16. Mariacristina Piva & Marco Vivarelli, 2017. "The employment impact of R&D expenditures and capital formation," DISCE - Quaderni dell'Istituto di Politica Economica ispe0078, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    17. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    18. Barbieri, Laura & Piva, Mariacristina & Vivarelli, Marco, 2016. "R&D, Embodied Technological Change and Employment: Evidence from Italian Microdata," IZA Discussion Papers 10354, Institute for the Study of Labor (IZA).
    19. Marco Vivarelli, 2015. "Structural Change and Innovation in Developing Economies: A Way Out of the Middle Income Trap ?," LEM Papers Series 2015/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    20. repec:gam:jsusta:v:10:y:2018:i:2:p:463-:d:131183 is not listed on IDEAS
    21. Piva, Mariacristina & Vivarelli, Marco, 2017. "R&D Expenditures and Employment: Evidence from Europe," GLO Discussion Paper Series 18, Global Labor Organization (GLO).
    22. Piva, Mariacristina & Vivarelli, Marco, 2017. "Is R&D Good for Employment? Microeconometric Evidence from the EU," IZA Discussion Papers 10581, Institute for the Study of Labor (IZA).
    23. Di Cintio, Marco & Ghosh, Sucharita & Grassi, Emanuele, 2017. "Firm growth, R&D expenditures and exports: An empirical analysis of italian SMEs," Research Policy, Elsevier, vol. 46(4), pages 836-852.

    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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