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Job Creation Effects of R&D Expenditures: Are High-tech Sectors the Key?

Author

Listed:
  • Francesco Bogliacino

    (European Commission - JRC)

  • Mariacristina Piva

    (Università Cattolica de Milano)

  • Marco Vivarelli

    (Università Cattolica de Milano)

Abstract

In this paper we assess the job creation effect of R&D expenditures, using a unique longitudinal database of 677 European companies over the period 1990-2008. We estimate a dynamic labour demand specification using a Least Squares Dummy Variable Corrected (LSDVC) technique. The labour-friendly nature of R&D emerges from the empirical analysis on the overall sample. However, this positive significant effect corresponds to the high-tech sector and services, while the effect is not significant for traditional manufacturing. The results support the policy agenda of promoting structural change in European economies.

Suggested Citation

  • 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.
    • Handle: RePEc:ipt:wpaper:201110
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    More about this item

    Keywords

    innovation; employment; manufacturing; services; LSDVC;
    All these keywords.

    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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