The role of R&D expenditure on job creation in the Malaysian manufacturing sector

The present paper attempts to examine and establish the relationship between R&D and job creation by using GMM-System across 54 industries in the Malaysian manufacturing sector. The empirical evidence provided in this paper suggests that R&D significantly determined job creation. R&D policy can contribute a positive effect on job creation in the Malaysian manufacturing sector. This is indeed in line with the National Science, Technology and Innovation Policy that aims to expand Malaysia’s gross expenditure on R&D by at least 2 percent prior to the year 2020.