Does R&D Investment Drive Employment Growth? Industry-Level Empirical Evidence from Japan

Published: 08-10-2020| Version 1 | DOI: 10.17632/hk85jrd3b2.1
Imran H Shah


The data used in this study was obtained from the Survey of Research and Development (Statistics Bureau, Ministry of Internal Affairs and Communications), which covers enterprises from 33 medium-level industries over the period 2002-2017. 33 industries were classified into three sectors: agriculture, manufacturing and service sectors by Japan Standard Industrial Classification. In the analysis below, we only focus on the medium-level industries. Due to data availability constraints, we only focus on medium-level industries’ data, as a more detailed break-down of sectors is published every five years from the Population Census. Please find the attached excel data file for further details. The Survey of R&D was initiated in 1953 as the “Basic Statistical Survey of Research Institutions”. The data of this survey is collected using questionnaires, which were mailed to business enterprises. The completed questionnaires are then returned to the Bureau through internet submission or mail. Respondents are divided into strata based on their engagement in R&D activities (2 categories), capital (4 classes) and industries (40 categories, according to the latest industrial revision). The data of firms undertaking R&D activities covers 40 industries which are subsequently aggregated into 33 medium-level industries. The survey coverage classification has faced major changes over time, including the shift from companies and research institutions to business enterprises and non-profit institutions and organisations in 2002. Given that this survey has witnessed significant adjustments related to the industrial classification, in the present study, we use data from 2002 onwards to study the sectoral impacts on employment structure, focusing only on business enterprises.