Technology and employment: The job creation effect of business R&D


  • DISCE - Quaderni del Dipartimento di Politica Economica


  • After discussing theory regarding the consequences of technological change on employment, our aim is to test the possible job creation effect of business R&D expenditures, using a unique longitudinal database covering 677 European firms (1990-2008). The main outcome from the dynamic LSDVC (Least Squared Dummy Variable Corrected) estimate is the labor-friendly nature of companies’ R&D, the coefficient of which turns out to be statistically significant. However, the positive impact of R&D on employment is only detectable in services and high-tech manufacturing. This is something that should be borne in mind by European policy makers having employment as one of their aims.

fecha de publicación

  • 2014-09

Líneas de investigación

  • Employment
  • Innovation
  • Manufacturing
  • Services


  • ispe0069