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The job creation effect of R&D expenditures

Author

Listed:
  • Francesco Bogliacino

    (European Commission, JRC-IPTS)

  • Marco Vivarelli

    (Università Cattolica)

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.

Suggested Citation

  • Francesco Bogliacino & Marco Vivarelli, 2010. "The job creation effect of R&D expenditures," Working Papers 2010/55, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2010-55
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    References listed on IDEAS

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    More about this item

    Keywords

    Technological change; corporate R&D; employment; product innovation; GMMSYS;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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