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Employment Effects of Innovation Activities

Part of the ZEW Economic Studies book series (ZEW, volume 38)

Abstract

The question of how technological progress affects the employment situation is an old one and has long been the focus of theoretical and empirical industrial organisation research as well as lively public discussions.33 The controversial debates on this issue mainly result from the fact that, from a theoretical point of view, different channels exist through which innovations can destroy existing jobs (displacement effects) but that there are also several mechanisms through which innovations may create new jobs (compensation effects). In addition, product and process innovations influence employment via different channels. The overall impact depends on a number of firm-, sector- as well as country-specific factors.

Keywords

Service Sector Instrumental Variable Process Innovation Product Innovation Innovation Activity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 33.
    For a historical overview, see Petit (1995) or Freeman and Soete (1997).Google Scholar
  2. 34.
    Closely related to the aspect of the shift in the labour demand from low-to high-skilled personnel is the increasing inequality of the relative wages across skill groups (see, e.g., Fitzenberger, 1999).Google Scholar
  3. 35.
    Traditionally, patents have been used as an indicator to measure innovation output. However, patent-based indicators have been heavily criticised as being a poor measure of innovative outcome (see Griliches, 1990).Google Scholar
  4. 36.
    The result of Zimmermann (1991) is an exception.Google Scholar
  5. 46.
    Hall, Lotti, and Mairesse (2006) modified the model by specifying two relationships between the observed price from the statistical office and firm-level prices for old and new products.Google Scholar
  6. 50.
    See figures on the labour force development in Fachserie 1, Reihe 4.2.1 published by Statistisches Bundesamt (a) or Peters (2003). Moreover, one can observe an employment shift within the manufacturing as well as service sector to more knowledge-intensive branches; see Pfeiffer and Falk (1999).Google Scholar
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© Physica-Verlag Heidelberg New York 2008

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