Effect of R&D Expenditures on Employment

Innovations, which are one of the most important identifiers of pass to information society, have caused socio-economic transformations on global level. Especially labour factor, which companies use in production, have been affected by innovations. On the grounds that it is both substitution and supplement, innovations increase requirement that is qualified labour and leave unskilled labour without job. Purpose of research is whether variations of R&D expenditures, which are the most important input of technology, affect labour on sectorial basis and determine its aspect. In the study, R & D expenditures, employment rates in agriculture, industry and service sectors were used as variables. The data cover the period from 1996 to 2014. The data were analyzed by simple regression model. Results of analysis has been detected that R&D expenditures have significant relation with agricultural, industry and tertiary sectors. It has detected that employment ratio of agricultural sector and R&D expenditure has negative relation, industry and tertiary sector and R&D expenditure has positive relation.