R&D, embodied technological change, and employment: evidence from Italian microdata

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14 Citations (Scopus)


This article explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel data set covering 265 innovative Italian firms over the period 1998–2010. The main outcome from the proposed fixed-effect estimations is a labor-friendly nature of total innovation expenditures; however, this positive effect is barely significant when the sole in-house R&D expenditures are considered and fades away when ETC is included as a proxy for innovation activities. Moreover, the positive employment impacts of innovation activities and R&D expenditures are totally due to firms operating in high-tech industries and large companies, while no job creation due to technical change is detectable in traditional sectors and SMEs.
Original languageEnglish
Pages (from-to)203-218
Number of pages16
JournalIndustrial and Corporate Change
Publication statusPublished - 2019


  • Embodied technological change
  • Employment
  • Innovation
  • R&D
  • Technology


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