Innovation and Employment in Economic Cycles

Lucchese, Matteo; Pianta, Mario

doi:10.1057/ces.2012.19

Cited by 38 publications

(38 citation statements)

References 25 publications

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“…In the downswing industries tend to concentrate on restructuring and the introduction of new processes, with generalized employment losses in all skill groups except managers; for craft and manual workers the negative effects are particularly heavy in manufacturing. These results confirm the findings of [93] on the impacts on total employment of new products and processes over the cycle and provide original evidence on how each professional group is affected by the combination of technological change and business cycles. Table 6 summarizes these main results.…”

Section: The Estimation For Business Cyclessupporting

confidence: 86%

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Technology and Occupations in Business Cycles

2018

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Building on studies on the impact of the Great Recession on the occupational and skill structure of employment, this article investigates developments over the last business cycle (2002-2007 and 2007-2011) in 36 manufacturing and service industries of five major European countries (Germany, France, Spain, Italy and United Kingdom). We analyse how technology, education and wages have shaped the evolution of four professional groups-Managers, Clerks, Craft and Manual workers-defined on the basis of ISCO classes. During the upswing in manufacturing industries all professional groups except managers have experienced job losses, while new jobs in services have followed a pattern of growing occupational polarization. Demand growth has a general positive effect across all occupations; new products lead to job creation in the group of managers only; wage increases slow down job creation except in the lowest occupational group. During the downswing, large job losses are concentrated in the lowest occupations and most relationships-including the role of demand and wages-break down; product innovation loses its positive impact on jobs while new processes drive restructuring and job destruction across all professional groups.

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Section: The Estimation For Business Cyclessupporting

confidence: 86%

“…We then compare the resulting coefficients in order to understand how the business cycle affects the relationships documented above, following the approach proposed in [93]; see also [84]. Table 5 shows the results.…”

Section: The Estimation For Business Cyclesmentioning

confidence: 99%

Technology and Occupations in Business Cycles

2018

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“…In manufacturing sectoral field, Lucchese and Pianta (2012) already explore the sensitivity of the impact of innovation on employment to economic booms and recessions. In particular, they exhibit that in upswings job creation is enhanced by product innovation and exports, while during downswings new products and exports become negligible and job displacements are correlated to process innovation and wage dynamics, related to corporate restructuring.…”

Section: Literature Reviewmentioning

confidence: 99%

Innovation effects on employment in high-tech and low-tech industries: evidence from large international firms within the triad

Aldieri

Vinci

2017

Eurasian Bus Rev

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In this paper we investigate the role of financial shocks, such as the economic crisis since 2006, in the reallocation process of employment flows in high-tech and low-tech industries. The contributions of the paper to the literature are threefold. First, a general framework of employment growth is estimated by using a dataset made of 879 large international firms observed for the period 2002-2010 and localized in three economic areas: USA, Japan and Europe. Second, we develop a database merging the firms' data with EPO patents data. In particular, the innovation variable is proxied by the R&D capital stock. Third contribution to the literature is to analyse the extent to which the economic crisis may affect the sensitivity of employment with respect to own innovation but also with respect to outside innovation, the R&D spillovers, in high-tech and low-tech industries. The empirical results suggest some important and significant results. This comparative finding could be the source of relevant industrial policy implications.

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“…First, we define 19 industries based on NACE 3 2-digit industries. Furthermore, in order to investigate whether reallocation effects of innovation are robust to different phases of the business cycle, we follow Lucchese and Pianta (2012) and Dachs et al (2016) and additionally split the sample into four business cycle periods: upturn, boom, downturn and recession. The business cycle phases are defined based on the country-specific two-year GDP growth rates using GDP data published by Eurostat.…”

Section: Sample and Data Descriptionmentioning

confidence: 99%

Innovation, creative destruction and structural change: firm-level evidence from European countries

Dachs

Hud

Köhler

et al. 2016

Industry and Innovation

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Innovation, Creative Destruction and Structural Change: Firm-level Evidence from European Countries AbstractThe shift of employment from lower to higher productive firms is an important driver for structural change and industry dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by product innovation may be offset by employment losses in related products, known as 'cannibalisation' or 'business stealing' effects in the literature, by employment losses from process and organisational innovation and by general productivity increases. The paper investigates this effect empirically with a large dataset from the European Community Innovation Survey (CIS). We find that employment gains and losses increase with technology intensity of the sector. Hightechnology manufacturing shows the strongest employment gains and losses from innovation, followed by knowledge-intensive services, low-technology manufacturing and less knowledge-intensive services.The net contribution of innovation to employment growth is mostly positive, an exception being manufacturing industries in recession periods.JEL: O33, J23, C26, D2

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Innovation and Employment in Economic Cycles

Cited by 38 publications

References 25 publications

Technology and Occupations in Business Cycles

Technology and Occupations in Business Cycles

Innovation effects on employment in high-tech and low-tech industries: evidence from large international firms within the triad

Innovation, creative destruction and structural change: firm-level evidence from European countries

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