Innovation and employment: A firm level analysis with European R&D Scoreboard data

Artikel

This article analyzes the microeconomic relation between innovation and employment, using company data from R&D Scoreboard for Europe covering 2000–2008. A reduced form equation in which R&D can account for both product and process innovation is estimated. The existence of non-constant elasticities is assessed, due to the combination of efficient scale and decreasing return to R&D: in our empirical estimates the scale effect tends to prevail for a given R&D intensity generating an increasing relation between total turnover and employment. These results have important implications for policymakers: innovation supporting policies should be correctly tailored and monitored since the results depend on the characteristics of the benefiting firms. Moreover, R&D intensity on GDP should be managed with care if taken as a policy target, given that the denominator is endogenous and non-linearly dependent on research expenditure.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: EconomiA ; ISSN: 1517-7580 ; Volume: 15 ; Year: 2014 ; Issue: 2 ; Pages: 141-154 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Wirtschaft ; Technological Change: Choices and Consequences; Diffusion Processes ; Demand and Supply of Labor: General
• Subject: Technological change ; Corporate R&D ; Employment ; Panel data

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bogliacino, Francesco
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2014

Further information

• DOI: doi:10.1016/j.econ.2014.04.002
• Handle: http://hdl.handle.net/10419/179568