The Job Creation Effect of R&D Expenditures

22 Pages Posted: 8 Feb 2010

See all articles by Francesco Bogliacino

Francesco Bogliacino

National University of Colombia - Department of Economics

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

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Abstract

In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour-friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets.

Keywords: technological change, corporate R&D, employment, product innovation, GMM-SYS

JEL Classification: O33

Suggested Citation

Bogliacino, Francesco and Vivarelli, Marco, The Job Creation Effect of R&D Expenditures. IZA Discussion Paper No. 4728. Available at SSRN: https://ssrn.com/abstract=1549204

Francesco Bogliacino (Contact Author)

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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