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"To R&D or not to R&D, that is the Question": A Firm Level Study of Employment Growth in the Irish Manufacturing Sector, 1986-95

Author

Listed:
  • Allan Kearns
  • Frances Ruane

Abstract

This paper uses micro-data to examine the relationship between R&D activity and employment growth. The R&D and employment data used are drawn from a survey of the Irish manufacturing sector undertaken by Forfás, the policy and advisory board for industrial development in Ireland. By international standards, Ireland has an exceptionally high level of foreign direct investment (FDI) and the paper explores differences in the R&D/growth relationships between foreign and indigenous firms, exploring the incidence and scale of R&D activity. Our preliminary findings of superior net employment creation for R&D-active firms, combined with the superior performance of the high tech sector, are bench marked against a number of similar studies.

Suggested Citation

  • Allan Kearns & Frances Ruane, 1997. ""To R&D or not to R&D, that is the Question": A Firm Level Study of Employment Growth in the Irish Manufacturing Sector, 1986-95," Economics Policy Papers 975, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduep:975
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    References listed on IDEAS

    as
    1. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-284, April.
    2. Johnson, Joanne & Baldwin, John R., 1995. "Business Strategies in Innovative and Non-innovative Firms in Canada," Analytical Studies Branch Research Paper Series 1995073e, Statistics Canada, Analytical Studies Branch.
    3. Ruane, Frances & Görg, Holger, 1997. "The Impact of Foreign Direct Investment on Sectoral Adjustment in the Irish Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 160, pages 76-86, April.
    4. repec:sae:niesru:v:160:y::i:1:p:76-86 is not listed on IDEAS
    5. Vivarelli, Marco & Evangelista, Rinaldo & Pianta, Mario, 1996. "Innovation and employment in Italian manufacturing industry," Research Policy, Elsevier, vol. 25(7), pages 1013-1026, October.
    6. Odagiri, Hiroyuki & Yasuda, Hideto, 1996. "The determinants of overseas R&D by Japanese firms: an empirical study at the industry and company levels," Research Policy, Elsevier, vol. 25(7), pages 1059-1079, October.
    7. Costas Meghir & Annette Ryan & John Van Reenen, 1995. "Job creation, technological innovation and adjustment costs," IFS Working Papers W95/06, Institute for Fiscal Studies.
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • 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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