Is R&D Good for Employment? Microeconometric Evidence from the EU

25 Pages Posted: 27 Feb 2017

See all articles by Mariacristina Piva

Mariacristina Piva

Universita Cattolica del Sacro Cuore

Marco Vivarelli

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

Abstract

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 of European economies are specialized in low-tech activities – is also worrying in terms of future perspectives of the European labour market.

Keywords: R&D, innovation, employment, firm-level analysis, EU

JEL Classification: O33

Suggested Citation

Piva, Mariacristina and Vivarelli, Marco, Is R&D Good for Employment? Microeconometric Evidence from the EU. IZA Discussion Paper No. 10581. Available at SSRN: https://ssrn.com/abstract=2923667

Mariacristina Piva (Contact Author)

Universita Cattolica del Sacro Cuore ( email )

Via Emilia Parmense, 84
Piacenza
Italy

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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