Firm Employment Growth, R&D Expenditures and Exports
Marco Di Cintio (Department of Economics, Management, Mathematics and Statistics – University of Salento); Sucharita Ghosh (Department of Economics – The University of Akron); Emanuele Grassi (Department of Economics, Management, Mathematics and Statistics – University of Salento)
J63, M51, O31, F14
Exports, R&D, Firm Growth, Quantile Regression
Economic Theory and Applications
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.
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