R&D, embodied technological change, and employment: Evidence from Italian microdata

L. Barbieri, M. Piva, M. Vivarelli

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This article explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel data set 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.
Original languageEnglish
Pages (from-to)203-218
Number of pages16
JournalIndustrial and Corporate Change
Volume28
Issue number1
DOIs
Publication statusPublished - Feb 2019

JEL classifications

  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
  • o15 - "Economic Development: Human Resources; Human Development; Income Distribution; Migration"
  • o14 - "Industrialization; Manufacturing and Service Industries; Choice of Technology"

Keywords

  • TECHNICAL CHANGE
  • JOB CREATION
  • FIRM-LEVEL
  • INNOVATION
  • PRODUCTIVITY
  • SKILLS
  • COUNTRIES
  • DEMAND
  • SIZE

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