Does <scp>R&amp;D</scp> investment drive employment growth? Empirical evidence at industry level from <scp>Japan</scp>

Strong demographic headwinds have motivated Japan to strengthen its economy by fostering innovation. This paper draws on a panel of business enterprises operating in 33 industries examine how research and development (R&D) activities affect employment. Our findings suggest that employment gains are associated with innovation, both at the aggregate level within groups major industries. The positive impact technological advancement is more pronounced manufacturing sector. results reveal heterogeneous patterns key determinants growth based industries' routine intensity, but they accord well compensation theory concerning connection between innovation job creation. These will be interest for policymakers design targeted economic strategies supporting could also serve as compass other countries similar workforce structures macroeconomic characteristics.