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R&D, Embodied Technological Change and Employment: Evidence from Italian Microdata

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  • Barbieri, Laura

    (Università Cattolica di Piacenza)

  • Piva, Mariacristina

    (Università Cattolica del Sacro Cuore)

  • Vivarelli, Marco

    (Università Cattolica del Sacro Cuore)

Abstract

This paper explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel dataset covering 265 innovative Italian firms over the period 1998-2010. The main outcome from the proposed fixed effect estimations is a labor-friendly nature of total innovation expenditures; however, this positive effect is barely significant when the sole in-house R&D expenditures are considered and fades away when ETC is included as a proxy for innovation activities. Moreover, the positive employment impacts of innovation activities and R&D expenditures are totally due to firms operating in high-tech industries and large companies, while no job-creation due to technical change is detectable in traditional sectors and SMEs.

Suggested Citation

  • Barbieri, Laura & Piva, Mariacristina & Vivarelli, Marco, 2016. "R&D, Embodied Technological Change and Employment: Evidence from Italian Microdata," IZA Discussion Papers 10354, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10354
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    More about this item

    Keywords

    technology; innovation; R&D; embodied technological change; employment;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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