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.
- 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"
- TECHNICAL CHANGE
- JOB CREATION
Barbieri, L., Piva, M., & Vivarelli, M. (2019). R&D, embodied technological change, and employment: Evidence from Italian microdata. Industrial and Corporate Change, 28(1), 203-218. https://doi.org/10.1093/icc/dty001