Technological activity and employment in a panel of UK firms

We investigate the relationship between technological activity, proxied by R&D, patents, and trade marks, and employment for a panel of British produc tion firms from 1987 to 1994. We modify standard derived demand for labour to include technology variables. We find employment is fostered by R&D expe nditure and UK patent publications, ceteris paribus on factor costs and cur rent sales. The employment impact of R&D is bigger in high technology secto rs, but employment increase tom UK patenting activity is bigger in mature t echnology sectors. In further analysis of persistent differences (the estim ated firm fixed effects) UK trade marks and US patents are also positively associated with employment.