@TechReport{iza:izadps:dp10354, author={Barbieri, Laura and Piva, Mariacristina and Vivarelli, Marco}, title={R&D, Embodied Technological Change and Employment: Evidence from Italian Microdata}, year={2016}, month={Nov}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={10354}, url={https://www.iza.org/index.php/publications/dp10354}, abstract={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 job-creation due to technical change is detectable in traditional sectors and SMEs.}, keywords={technology;innovation;R&D;embodied technological change;employment}, }