The intra-regional and inter-regional effect of industrial research and development on employment in the industrial sector in the provinces of the country

Employment is one of the most important issues of economic and social planning . One of the factors affecting employment is research and development. Therefore, the aim of this study is to investigate the effect of R&D on employment in the industrial sector in the provinces during 2006 - 2019 using the spatial econometric model. The results showed that the industrial value added had the greatest direct and indirect effect on the employment of the industrial sector. The spatial effect of this variable was negative and significant. The direct effect of industrial investment on industrial employment is positive but insignificant. The indirect effect of the industrial investment on the industrial employment of the neighboring provinces is negative, but it has not had a significant effect on the employment of the neighboring provinces. The direct effect of industrial R&D on the employment is positive and significant. Also, its spatial impact or spillover on the employment of neighboring provinces has been calculated to be positive and significant. Therefore, the increase of industrial research and development in one province leads to the increase of employment in neighboring provinces. Considering the importance of employment in the industry, this matter should be taken into consideration.