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The Job Creation Effect of R&D Expenditures

Author

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  • Bogliacino, Francesco

    (Universidad EAFIT)

  • Vivarelli, Marco

    (Università Cattolica del Sacro Cuore)

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

  • Bogliacino, Francesco & Vivarelli, Marco, 2010. "The Job Creation Effect of R&D Expenditures," IZA Discussion Papers 4728, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4728
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    employment; corporate R&D; technological change; product innovation; GMM-SYS;
    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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