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

Arbeitspapier

In this article, we analyse the microeconomic relationship between innovation and employment, using company data from R&D Scoreboard for Europe covering 2000-2008. We estimate a reduced form equation in which R&D can account for both product and process innovation. 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 relationship between total turnover and employment. Our results have important implications for policymakers: R&D and innovation supporting policies should be correctly tailored and monitored since the results depend on the characteristics of the firms benefited. By the same token, calibration of general equilibrium models aimed at quantifying the employment impact of R&D and innovation policies should take into account that the average elasticity can be a very rough approximation. We claim that our results support the position that R&D and innovation policies should be tailored towards favouring entry by knowledge intensive firms, instead of supporting existing actors.

Object Details

• ISBN: 978-92-79-17119-2
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IPTS Working Papers on Corporate R&D and Innovation ; No. 08/2010

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): European Commission, Joint Research Centre (JRC)
• (where): Seville
• (when): 2010

Further information

• DOI: doi:10.2791/47548
• Handle: http://hdl.handle.net/10419/202124
• Last update: 10.03.2025, 11:41 AM CET