Template-Type: ReDIF-Paper 1.0 Author-Name: Francesco Bogliacino Author-X-Name-First: Francesco Author-X-Name-Last: Bogliacino Author-Email: francesco.bogliacino@gmail.com Author-Workplace-Name: Universidad EAFIT and RISE Group, Medellin Author-Name: Marco Vivarelli Author-X-Name-First: Marco Author-X-Name-Last: Vivarelli Author-Email: marco.vivarelli@unicatt.it Author-Workplace-Name: DISCE, Università Cattolica Title: Innovation and employment: Some evidence from European sectors Abstract: In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previoustheoretical and empirical literature discussed in the paper. Interestingly enough, the labourfriendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets. Length: 21 pages Creation-Date: 2011-12 Publication-Status: File-URL: http://www.unicatt.it/dipartimenti/DISES/allegati/dises1178.pdf File-Format: Application/pdf File-Function: First version, 2011 Number: dises1178 Classification-JEL: O33. Keywords: Technological change, corporate R&D, employment, product innovation, GMMSYS. Handle: RePEc:ctc:serie2:dises1178