Investment, innovation activities and employment across European regions

Sergio Destefanis; Naqeeb Ur Rehman

doi:10.1016/j.strueco.2023.03.013

Investment, innovation activities and employment across European regions

Sergio Destefanis^*
, Naqeeb Ur Rehman

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

31 Scopus citations

Abstract

This study examines the effect of various forms of investment expenditure (gross fixed capital formation, R&D and European Structural and Investment Funds) on employment across NUTS2 European regions from 2000 to 2016. We find that the effect of R&D is heavily conditional upon regional characteristics. Only in NUTS2 regions with medium to high levels of innovation is R&D likely to generate employment. Gross fixed capital formation is labour friendly, but less so in highly innovative regions. Accordingly, the more that European regions shift closer to the world's technology frontier, the more that R&D expenditure, rather than investment in physical assets, will be capable of generating positive employment externalities. Amongst European Structural and Investment Funds, we find an especially significant effect for the European Agricultural Fund for Rural Development (in the more developed regions) and the Cohesion Fund.

Original language	English
Pages (from-to)	474-490
Number of pages	17
Journal	Structural Change and Economic Dynamics
Volume	65
DOIs	https://doi.org/10.1016/j.strueco.2023.03.013
State	Published - Jun 2023

Bibliographical note

Publisher Copyright:
© 2023 Elsevier B.V.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 2 Zero Hunger

Keywords

Cohesion policy
ESIF
Gross fixed capital formation
Labour demand
R&D

ASJC Scopus subject areas

Economics and Econometrics

Access to Document

10.1016/j.strueco.2023.03.013

Cite this

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title = "Investment, innovation activities and employment across European regions",

abstract = "This study examines the effect of various forms of investment expenditure (gross fixed capital formation, R\&D and European Structural and Investment Funds) on employment across NUTS2 European regions from 2000 to 2016. We find that the effect of R\&D is heavily conditional upon regional characteristics. Only in NUTS2 regions with medium to high levels of innovation is R\&D likely to generate employment. Gross fixed capital formation is labour friendly, but less so in highly innovative regions. Accordingly, the more that European regions shift closer to the world's technology frontier, the more that R\&D expenditure, rather than investment in physical assets, will be capable of generating positive employment externalities. Amongst European Structural and Investment Funds, we find an especially significant effect for the European Agricultural Fund for Rural Development (in the more developed regions) and the Cohesion Fund.",

keywords = "Cohesion policy, ESIF, Gross fixed capital formation, Labour demand, R\&D",

author = "Sergio Destefanis and Rehman, \{Naqeeb Ur\}",

note = "Publisher Copyright: {\textcopyright} 2023 Elsevier B.V.",

year = "2023",

month = jun,

doi = "10.1016/j.strueco.2023.03.013",

language = "English",

volume = "65",

pages = "474--490",

journal = "Structural Change and Economic Dynamics",

issn = "0954-349X",

publisher = "Elsevier B.V.",

}

TY - JOUR

T1 - Investment, innovation activities and employment across European regions

AU - Destefanis, Sergio

AU - Rehman, Naqeeb Ur

PY - 2023/6

Y1 - 2023/6

N2 - This study examines the effect of various forms of investment expenditure (gross fixed capital formation, R&D and European Structural and Investment Funds) on employment across NUTS2 European regions from 2000 to 2016. We find that the effect of R&D is heavily conditional upon regional characteristics. Only in NUTS2 regions with medium to high levels of innovation is R&D likely to generate employment. Gross fixed capital formation is labour friendly, but less so in highly innovative regions. Accordingly, the more that European regions shift closer to the world's technology frontier, the more that R&D expenditure, rather than investment in physical assets, will be capable of generating positive employment externalities. Amongst European Structural and Investment Funds, we find an especially significant effect for the European Agricultural Fund for Rural Development (in the more developed regions) and the Cohesion Fund.

AB - This study examines the effect of various forms of investment expenditure (gross fixed capital formation, R&D and European Structural and Investment Funds) on employment across NUTS2 European regions from 2000 to 2016. We find that the effect of R&D is heavily conditional upon regional characteristics. Only in NUTS2 regions with medium to high levels of innovation is R&D likely to generate employment. Gross fixed capital formation is labour friendly, but less so in highly innovative regions. Accordingly, the more that European regions shift closer to the world's technology frontier, the more that R&D expenditure, rather than investment in physical assets, will be capable of generating positive employment externalities. Amongst European Structural and Investment Funds, we find an especially significant effect for the European Agricultural Fund for Rural Development (in the more developed regions) and the Cohesion Fund.

KW - Cohesion policy

KW - ESIF

KW - Gross fixed capital formation

KW - Labour demand

KW - R&D

UR - https://www.scopus.com/pages/publications/85152662114

U2 - 10.1016/j.strueco.2023.03.013

DO - 10.1016/j.strueco.2023.03.013

M3 - Article

AN - SCOPUS:85152662114

SN - 0954-349X

VL - 65

SP - 474

EP - 490

JO - Structural Change and Economic Dynamics

JF - Structural Change and Economic Dynamics

ER -

Investment, innovation activities and employment across European regions

Abstract

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

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