IDEAS home Printed from https://ideas.repec.org/p/pia/wpaper/28-2007.html
   My bibliography  Save this paper

Evaluating Innovation and Labour Market Relationships: The Case of Italy

Author

Listed:
  • Luca Pieroni
  • Fabrizio Pompei

Abstract

In this paper the link between labour market flexibility and innovation is analysed, paying particular attention to the different technological regimes of economic activities and the different geographical areas of the Italian economy. A dynamic panel data specification is used to assess the endogenous relationship between patents, included as a proxy of the innovation, and job turnover and wages which represent labour market indicators. The results show that higher job turnover only has a significant and negative impact on patent activities in regional sectors of Northern Italy, while a positive and significant impact of blue and white collar wages has been generally found.

Suggested Citation

  • Luca Pieroni & Fabrizio Pompei, 2007. "Evaluating Innovation and Labour Market Relationships: The Case of Italy," Quaderni del Dipartimento di Economia, Finanza e Statistica 28/2007, Università di Perugia, Dipartimento Economia.
    • Handle: RePEc:pia:wpaper:28/2007
    as

    Download full text from publisher

    File URL: http://www2.ec.unipg.it/quaderni/quad28pompeipieronidef_001.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Acemoglu, Daron, 1997. "Technology, unemployment and efficiency," European Economic Review, Elsevier, vol. 41(3-5), pages 525-533, April.
    2. Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(3), pages 301-315, May.
    3. Malerba, Franco & Orsenigo, Luigi, 1999. "Technological entry, exit and survival: an empirical analysis of patent data," Research Policy, Elsevier, vol. 28(6), pages 643-660, August.
    4. Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 51-73, June.
    5. Clive Lawson & Edward Lorenz, 1999. "Collective Learning, Tacit Knowledge and Regional Innovative Capacity," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 305-317.
    6. repec:fth:harver:1473 is not listed on IDEAS
    7. David Keeble & Frank Wilkinson, 1999. "Collective Learning and Knowledge Development in the Evolution of Regional Clusters of High Technology SMEs in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 295-303.
    8. Joseph E. Stiglitz, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC's: The Labor Turnover Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(2), pages 194-227.
    9. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
    10. Schivardi, Fabiano, 2003. "Reallocation and learning over the business cycle," European Economic Review, Elsevier, vol. 47(1), pages 95-111, February.
    11. Klaus Zimmermann, 2005. "European Labour Mobility: Challenges and Potentials," De Economist, Springer, vol. 153(4), pages 425-450, December.
    12. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March.
    13. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
    14. Jonathan Michie & Maura Sheehan, 2003. "Labour market deregulation, 'flexibility' and innovation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(1), pages 123-143, January.
    15. Brewster, Chris & Mayne, Lesley & Tregaskis, Olga, 1997. "Flexible working in Europe," Journal of World Business, Elsevier, vol. 32(2), pages 133-151, July.
    16. Raffaele Paci & Stefano Usai, 2000. "The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 237-268.
    17. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    18. Luca Pieroni & Fabrizio Pompei, 2006. "Localizzazione geografica delle innovazioni e mercato del lavoro," Rivista di Politica Economica, SIPI Spa, vol. 96(2), pages 277-328, March-Apr.
    19. Daron Acemoglu, 1997. "Training and Innovation in an Imperfect Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 445-464.
    20. Faini, Riccardo, 1999. "Trade unions and regional development," European Economic Review, Elsevier, vol. 43(2), pages 457-474, February.
    21. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 6(2), pages 167-184, June.
    22. Arnott, Richard J & Stiglitz, Joseph E, 1985. "Labor Turnover, Wage Structures, and Moral Hazard: The Inefficiency of Competitive Markets," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 434-462, October.
    23. Asheim, Bjorn T. & Coenen, Lars, 2005. "Knowledge bases and regional innovation systems: Comparing Nordic clusters," Research Policy, Elsevier, vol. 34(8), pages 1173-1190, October.
    24. Mortensen, Dale T & Pissarides, Christopher A, 1999. "Unemployment Responses to 'Skill-Biased' Technology Shocks: The Role of Labour Market Policy," Economic Journal, Royal Economic Society, vol. 109(455), pages 242-265, April.
    25. Boeri, Tito, 1999. "Enforcement of employment security regulations, on-the-job search and unemployment duration," European Economic Review, Elsevier, vol. 43(1), pages 65-89, January.
    26. Antonelli, Cristiano, 2001. "The Microeconomics of Technological Systems," OUP Catalogue, Oxford University Press, number 9780199245536.
    27. Mariacristina Piva & Marco Vivarelli, 2005. "Innovation and Employment: Evidence from Italian Microdata," Journal of Economics, Springer, vol. 86(1), pages 65-83, October.
    28. Boeri, Tito, 1996. "Is Job Turnover Countercyclical?," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 603-625, October.
    29. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
    30. Malerba, Franco & Orsenigo, Luigi, 1997. "Technological Regimes and Sectoral Patterns of Innovative Activities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 83-117.
    31. Kleinknecht, Alfred, 1998. "Is Labour Market Flexibility Harmful to Innovation?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(3), pages 387-396, May.
    32. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, vol. 25(3), pages 451-478, May.
    33. Amin, Ash & Wilkinson, Frank, 1999. "Learning, Proximity and Industrial Performance: An Introduction," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 121-125, March.
    34. Creedy, John & Whitfield, Keith, 1988. "The Economic Analysis of Internal Labour Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 40(4), pages 247-269, October.
    35. Flaig, Gebhard & Stadler, Manfred, 1994. "Success Breeds Success. The Dynamics of the Innovation Process," Empirical Economics, Springer, vol. 19(1), pages 55-68.
    36. Christian Longhi & David Keeble, 2000. "High-Tech clusters and collective learning in Europe : regional evolutionary trends in the 1990s," Post-Print halshs-00459289, HAL.
    37. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    38. Roberta Capello, 1999. "Spatial Transfer of Knowledge in High Technology Milieux: Learning Versus Collective Learning Processes," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 353-365.
    39. Marco Vivarelli, 1995. "The Economics of Technology and Employment," Books, Edward Elgar Publishing, number 458.
    40. Kitson, Michael & Martin, Ron & Wilkinson, Frank, 2000. "Labour Markets, Social Justice and Economic Efficiency," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(6), pages 631-641, November.
    41. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
    42. Lilia Costabile & Erasmo Papagni, 1998. "Dinamica dell'occupazione, salari e innovazione nell'industria italiana," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 363-394.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Pieroni & Fabrizio Pompei, 2005. "Innovations and Labour Market Institutions: An Empirical Analysis of the Italian Case in the middle 90’s," Quaderni del Dipartimento di Economia, Finanza e Statistica 12/2005, Università di Perugia, Dipartimento Economia.
    2. Castro Silva, Hugo & Lima, Francisco, 2017. "Technology, employment and skills: A look into job duration," Research Policy, Elsevier, vol. 46(8), pages 1519-1530.
    3. Robert VERGEER & Alfred KLEINKNECHT, 2014. "Do labour market reforms reduce labour productivity growth? A panel data analysis of 20 OECD countries (1960–2004)," International Labour Review, International Labour Organization, vol. 153(3), pages 365-393, September.
    4. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Understanding productivity dynamics: A task taxonomy approach," Research Policy, Elsevier, vol. 47(1), pages 289-304.
    5. Francesco Bogliacino & Marco Vivarelli, 2012. "The Job Creation Effect Of R&D Expenditures," Australian Economic Papers, Wiley Blackwell, vol. 51(2), pages 96-113, June.
    6. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: A firm-level analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1176, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    7. Faria, Lourenço Galvão Diniz & Andersen, Maj Munch, 2017. "Sectoral patterns versus firm-level heterogeneity - The dynamics of eco-innovation strategies in the automotive sector," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 266-281.
    8. Raffaele Paci & Stefano Usai, 2000. "The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 237-268.
    9. Antonioli,Davide & Marzucchi,Alberto & Montresor,Sandro, 2012. "Regional innovation policy and innovative behaviours. A propensity score matching evaluation," INGENIO (CSIC-UPV) Working Paper Series 201205, INGENIO (CSIC-UPV).
    10. Francesco Quatraro, 2009. "Diffusion of Regional Innovation Capabilities: Evidence from Italian Patent Data," Regional Studies, Taylor & Francis Journals, vol. 43(10), pages 1333-1348, December.
    11. Pierre-Alexandre Balland & David L. Rigby, 2015. "The geography and evolution of complex knowledge," Papers in Evolutionary Economic Geography (PEEG) 1502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2015.
    12. Arntz, Melanie & Gregory, Terry & Zierahn, Ulrich, 2016. "ELS issues in robotics and steps to consider them. Part 1: Robotics and employment. Consequences of robotics and technological change for the structure and level of employment," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 146501.
    13. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: A firm-level analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1176, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    14. Paci, Raffaele & Usai, Stefano, 2000. "Externalities, Knowledge Spillovers And The Spatial Distribution Of Innovation," ERSA conference papers ersa00p104, European Regional Science Association.
    15. Lutz Bellmann & Katalin Evers & Reinhard Hujer, 2018. "Regional and firm-specific effects on innovations using multi-level methods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 319-349, September.
    16. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2014. "Technology and employment: the job creation effect of business R&D," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 122(3), pages 239-264.
    17. Saarivirta, Toni & Consoli, Davide, 2007. "Where Did They Go? A Study on Newly Established Universities and Graduate Mobility in Finland," MPRA Paper 11377, University Library of Munich, Germany.
    18. Roberta Capello & Camilla Lenzi, 2014. "Spatial Heterogeneity In Knowledge, Innovation, And Economic Growth Nexus: Conceptual Reflections And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 186-214, March.
    19. Wachsen, Eva & Blind, Knut, 2016. "More labour market flexibility for more innovation? Evidence from employer–employee linked micro data," Research Policy, Elsevier, vol. 45(5), pages 941-950.
    20. Francesco Bogliacino & Marco Vivarelli, 2011. "Innovation and employment: Some evidence from European sectors," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1178, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

    More about this item

    Keywords

    Labour market flexibility; Innovation; Dynamic panel data; Endogeneous relationship;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pia:wpaper:28/2007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ubaldo Pizzoli (email available below). General contact details of provider: https://edirc.repec.org/data/deperit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.