Arbeitspapier

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

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.

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

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

Classification
Wirtschaft
Technological Change: Choices and Consequences; Diffusion Processes
Demand and Supply of Labor: General
Subject
Technological change
corporate R&D
employment
panel data

Event
Geistige Schöpfung
(who)
Bogliacino, Francesco
Event
Veröffentlichung
(who)
European Commission, Joint Research Centre (JRC)
(where)
Seville
(when)
2010

DOI
doi:10.2791/47548
Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Bogliacino, Francesco
  • European Commission, Joint Research Centre (JRC)

Time of origin

  • 2010

Other Objects (12)