This paper explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel dataset 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 jobcreation due to technical change is detectable in traditional sectors and SMEs.
Lingua originaleEnglish
Numero di pagine32
Stato di pubblicazionePubblicato - 2016


  • R&D
  • embodied technological change
  • employment
  • innovation
  • technology


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