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In this paper we assess the job creation effect of R&D expenditures, using a unique longitudinal database of 677 European companies over the period 1990-2008. We estimate a dynamic labour demand specification using a Least Squares Dummy Variable Corrected (LSDVC) technique. The labour-friendly nature of R&D emerges from the empirical analysis on the overall sample. However, this positive significant effect corresponds to the high-tech sector and services, while the effect is not significant for traditional manufacturing. The results support the policy agenda of promoting structural change in European economies.
2013-05-31
Publications Office of the European Union
JRC69318
978-92-79-23392-0,   
1831-9408,    1831-9424,   
EUR 24747 EN/10,    OP LF-NJ-24747-EN-N,   
http://iri.jrc.ec.europa.eu/docs/papers/2011/WP_10-2011.pdf,    https://publications.jrc.ec.europa.eu/repository/handle/JRC69318,   
10.2791/75958,   
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