Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms

Vincent Van Roy · Dániel Vértesy · Marco Vivarelli

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Firm Innovation and Growth Labor market dynamics and wage inequality Intellectual Property and Patents

Abstract

This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003–2012. The main outcome from the proposed GMM-SYS estimations is the labor-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services.

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References

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