FEEM working papers "Note di lavoro" series
2016 .044

Firm Employment Growth, R&D Expenditures and Exports


Authors: Marco Di Cintio, Sucharita Ghosh, Emanuele Grassi
Series: Economic Theory
Editor: Carlo Carraro
Keywords: Exports, R&D, Firm Growth, Quantile Regression
JEL n.: J63, M51, O31, F14

Abstract

This paper studies firms’ decisions to export and invest in R&D and their effects on employment growth and labor flows for a sample of Italian SMEs operating in the manufacturing industry. After accounting for the under-reporting of R&D in SMEs, our quantile regressions reveal that (i) R&D is associated with higher employment growth rates, higher hiring rates and lower separation rates; (ii) R&D-induced exports are negatively related to employment growth and accessions and positively related to separations; and (iii) pure exports are not a driver of employment growth and labor flows.

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Suggested citation: Di Cintio, M., S. Ghosh, E. Grassi, (2016), 'Firm Employment Growth, R&D Expenditures and Exports', Nota di Lavoro 44.2016, Milan, Italy: Fondazione Eni Enrico Mattei

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