Employment effect of innovation

Arbeitspapier

The present paper estimates and decomposes the employment effect of innovation by R&D intensity levels. Our micro-econometric analysis is based on a large international panel data set from the EU Industrial R&D Investment Scoreboard. Employing flexible semi-parametric methods - the generalised propensity score - allows us to recover the full functional relationship between the R&D investment and firm employment, and to address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results suggest that modest innovators do not create and may even destruct jobs by raising their R&D expenditures. Most of the jobs in the economy are created by innovation followers: increasing innovation by 1% may increase employment up to 0.7%. The job creation effect of innovation reaches its peak when the R&D intensity is around 100% of the total capital expenditure, after which the positive employment effect declines and becomes statistically insignificant. Innovation leaders do not create jobs by further increasing their R&D expenditures, which are already very high.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: KOF Working Papers ; No. 428

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Semiparametric and Nonparametric Methods: General ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Multinational Firms; International Business ; Demand and Supply of Labor: General ; Labor Demand ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Management of Technological Innovation and R&D ; Technological Change: Choices and Consequences; Diffusion Processes
• Thema: innovation ; R&D investment ; causal inference ; semi-parametric ; employment ; job creation ; GPS

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kancs, d'Artis ; Siliverstovs, Boriss
• Ereignis: Veröffentlichung
• (wer): ETH Zurich, KOF Swiss Economic Institute
• (wo): Zurich
• (wann): 2017

Weitere Informationen

• DOI: doi:10.3929/ethz-a-010852605
• Handle: http://hdl.handle.net/10419/162240
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ