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Unemployment and Innovation Patterns: The Critical Role of Coordination

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  • Gatti, Donatella

Abstract

This paper explores cross-country differences in unemployment and innovation patterns from the perspective of "comparative institutional analysis". A generalized efficiency wage model is proposed for the determination of equilibrium unemployment and innovation within two alternative scenarios: firms coordinating through either market mechanisms or social networks. The mode of coordination is shown to affect firms' choices of either radical or incremental innovations and their responses to competitive pressure. Higher unemployment may result as a consequence of specialization along innovation trajectories that increase job precariousness. Copyright 2000 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial & Corporate Change.

Volume (Year): 9 (2000)
Issue (Month): 3 (September)
Pages: 521-44

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Handle: RePEc:oup:indcch:v:9:y:2000:i:3:p:521-44

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Cited by:
  1. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
  2. repec:hal:cepnwp:halshs-00586850 is not listed on IDEAS
  3. Donatella Gatti, 2005. "Competence, Knowledge, and the Labour Market. The Role of complementarities," Labor and Demography 0507006, EconWPA.
  4. Gatti, Donatella, 2008. "Macroeconomic Effects of Ownership Structure in OECD Countries," IZA Discussion Papers 3415, Institute for the Study of Labor (IZA).

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