Abstract:

Arge spending, an indicator of technological development, is an important factor in the determination and implementation of new production processes. Technological development is a phenomenon that causes structural changes between sectors. The technological progress that affects the establishment of production factors in the production process also affects the employment structure of the relevant sectors. The demand for labour varies in the process of adaptation to new production technologies according to the technology intensity of the industries. In this context, the study’s objective is to examine the impact of Arge spending on industrial employment in the period 1996-2017. The findings from the AMG method show that the Arge spending has a negative impact on the employment rate in the agricultural sector. A 1% increase in the Arge spending reduces the employment rate in the agricultural sector by 0.13%. In the industry and services sector, the increase of 1% in the Arge spending, the share of employment increased by 0.16% and 0.26% respectively.

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