Is innovation destroying jobs? Firm-level evidence from the EU

Mariacristina Piva, Marco Vivarelli

Research output: Book/ReportReportProfessional


Using a unique firm-level database comprising the top European R&D investors over the period 2002-2013 and running LSDVC estimates, this study finds a significant labour-friendly impact of R&D expenditures. However, this positive employment effect appears limited in magnitude and entirely due to the medium-and high-tech sectors, while no effect can be detected in the low-tech industries. From a policy point of view, this outcome is supporting the EU2020 strategy, but - taking into account that most European economies are specialised in low-tech activities - is also worrying in terms of future perspectives of the European labour market.
Original languageEnglish
PublisherUNU-MERIT working papers
Publication statusPublished - 10 Mar 2017

JEL classifications

  • e24 - "Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital"
  • o14 - "Industrialization; Manufacturing and Service Industries; Choice of Technology"
  • o15 - "Economic Development: Human Resources; Human Development; Income Distribution; Migration"
  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
  • o52 - Economywide Country Studies: Europe


  • Innovation
  • R&D
  • innovation
  • employment
  • firm-level analysis
  • EU


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