Title: Employment Effect of Innovation
Publisher: Publications Office of the European Union
Publication Year: 2019
JRC N°: JRC114588
ISBN: 978-92-76-00041-9 (online)
ISSN: 2467-2203 (online)
Other Identifiers: OP KJ-AE-19-002-EN-N (online)
URI: http://publications.jrc.ec.europa.eu/repository/handle/JRC114588
DOI: 10.2760/52757
Type: EUR - Scientific and Technical Research Reports
Abstract: We provide a novel evidence about the innovation-employment nexus by decomposing it by R&D intensity in a continuous setup and relaxing the linearity assumption. Using a large international firm-level panel data set for OECD countries and employing a flexible semi-parametric method – the generalised propensity score – allows us to recover the full functional relationship between the R&D-driven innovation and firm employment as well as address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results confirm that the relationship between innovation and employment entails important non-linearities responsible for significant differences in employment response to innovation at different R&D intensity levels.
JRC Directorate:Joint Research Centre Corporate Activities

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