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

L. Barbieri; M. Piva; M. Vivarelli

doi:10.1093/icc/dty001

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

L. Barbieri
, M. Piva
, M. Vivarelli^*

^*Corresponding author for this work

UNU-MERIT Research and Training Institute

Research output: Contribution to journal › Article › Academic › peer-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 language	English
Pages (from-to)	203-218
Number of pages	16
Journal	Industrial and Corporate Change
Volume	28
Issue number	1
DOIs	https://doi.org/10.1093/icc/dty001
Publication status	Published - 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

Access to Document

10.1093/icc/dty001

1 Erratum / corrigendum

Corrigendum: R&D, embodied technological change, and employment: evidence from Italian microdata (vol 28, pg 203, 2019)
Barbieri, L., Piva, M. & Vivarelli, M., 1 Aug 2025, In: Industrial and Corporate Change. 34, 4, p. e90-e90 1 p.
Research output: Contribution to journal › Erratum / corrigendum › Academic

Open Access

Cite this

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title = "R\&D, embodied technological change, and employment: Evidence from Italian microdata",

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.",

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author = "L. Barbieri and M. Piva and M. Vivarelli",

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volume = "28",

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T1 - R&D, embodied technological change, and employment

T2 - Evidence from Italian microdata

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N2 - 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.

AB - 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.

KW - TECHNICAL CHANGE

KW - JOB CREATION

KW - FIRM-LEVEL

KW - INNOVATION

KW - PRODUCTIVITY

KW - SKILLS

KW - COUNTRIES

KW - DEMAND

KW - SIZE

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DO - 10.1093/icc/dty001

M3 - Article

SN - 0960-6491

VL - 28

SP - 203

EP - 218

JO - Industrial and Corporate Change

JF - Industrial and Corporate Change

IS - 1

ER -

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

Abstract

JEL classifications

Keywords

Access to Document

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Research output

Corrigendum: R&D, embodied technological change, and employment: evidence from Italian microdata (vol 28, pg 203, 2019)

Cite this