“…Next, the potential “cannibalization” effect of new products on older ones may weaken the job‐creation impact of product innovations (Barbieri, Mussida, et al., 2019; Calvino & Virgillito, 2018). Additionally, the relationship between technical change and employment is likely to be affected by the ongoing business cycle, as changing economic conditions, such as credit constraints, the opportunity cost of investing in innovation, and the appropriability and demand conditions, shape the innovation behavior of firms, which, in turn, affects their ability to generate jobs (Dachs et al., 2020; Peters et al., 2014).…”