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

  • Francesco Bogliacino

    ()

    (JRC-IPTS)

  • Mariacristina Piva

    (Università Cattolica de Milano)

  • Marco Vivarelli

    ()

    (Università Cattolica de Milano)

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.

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File URL: http://iri.jrc.ec.europa.eu/documents/10180/980cc85a-0826-4106-830a-57be7d7859f8
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Paper provided by Institute of Prospective Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers on Corporate R&D and Innovation with number 2011-10.

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Length: 31 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:ipt:wpaper:201110
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  8. Bun, Maurice J. G. & Kiviet, Jan F., 2003. "On the diminishing returns of higher-order terms in asymptotic expansions of bias," Economics Letters, Elsevier, vol. 79(2), pages 145-152, May.
  9. Arellano, M., 1989. "A Note On The Anderson-Hsiao Estimator For Panel Data," Economics Series Working Papers 9975, University of Oxford, Department of Economics.
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