UNU-MERIT Working Papers Series
Is innovation destroying jobs? Firm-level evidence from the EU
Mariacristina Piva & Marco Vivarelli #2017-013Using a unique firm-level database comprising the top European R&D
investors over the period 2002-2013 and running LSDVC estimates, this
study finds a significant labour-friendly impact of R&D expenditures.
However, this positive employment effect appears limited in magnitude
and entirely due to the medium-and high-tech sectors, while no effect
can be detected in the low-tech industries. From a policy point of view,
this outcome is supporting the EU2020 strategy, but - taking into
account that most European economies are specialised in low-tech
activities - is also worrying in terms of future perspectives of the
European labour market.
Keywords: R&D, innovation, employment, firm-level analysis, EU
JEL Classification: O33
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