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Technology, Growth and Employment

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Author Info

  • Marva Corley
  • Jonathan Michie
  • Christine Oughton

Abstract

The relationship between technology, productivity and employment is a complex one. Increased productivity can lead not just to increased market share, but through falling relative prices can help expand markets, and through product innovation can develop new markets. On the other hand, if demand and hence output does not expand in line with productivity, then an inverse relation between productivity and employment will result. The European Union seeks to improve living standards in Europe by boosting productivity, competitiveness and employment together. How, though, is this to be achieved? This paper looks at the effects on productivity of different forms of investment--in physical capital, in Research & Development, and in human capital. The paper also distinguishes between the high-tech and low-tech sectors. There does appear to be scope for boosting both productivity and employment, particularly in the high tech sectors. But to do so will require increased investment across all three categories--in machinery, in innovation and in people.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210136109
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 16 (2002)
Issue (Month): 3 ()
Pages: 265-276

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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:265-276

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Cited by:
  1. A. Altuzarra & C. Puerta & F. Serrano, 2007. "Evaluating the Relative Innovative Position of European Union Member Countries: An Empirical Analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 175-188.
  2. Thomas Hedner & Hanadi Almubaraki & Michael Busler & Adli Abouzeedan, 2011. "Business and Technology Incubators and their Role in the Nordic Countries in Comparison to the GCC countries: An Analysis of Current Affairs," ERSA conference papers ersa10p1283, European Regional Science Association.
  3. Adli Abouzeedan & Boo Edgar & Thomas Hedner, 2011. "Can Innovation Enhance Entrepreneurial Activities of a Region? An Analysis Utilizing the Entrepreneurial Remedy Model (EREM)," ERSA conference papers ersa10p1277, European Regional Science Association.
  4. Mario Coccia, 2012. "What are the effects of public debt on innovation and employment growth?," CERIS Working Paper 201206, Institute for Economic Research on Firms and Growth - Moncalieri (TO).

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