Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202124 
Year of Publication: 
2010
Series/Report no.: 
IPTS Working Papers on Corporate R&D and Innovation No. 08/2010
Publisher: 
European Commission, Joint Research Centre (JRC), Seville
Abstract: 
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.
Subjects: 
Technological change
corporate R&D
employment
panel data
JEL: 
O33
J20
Persistent Identifier of the first edition: 
ISBN: 
978-92-79-17119-2
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.