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The Impact of Innovation on Employment in Services: Evidence from Italy

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  • Rinaldo Evangelista
  • Maria Savona

Abstract

This article investigates the employment impact of innovation in services, using the data gathered through the 1993-95 Italian innovation survey. The empirical evidence shows that the impact of innovation on employment varies greatly across industries and according to the level of qualification of the labour force. Among small firms and in less than a half of the service sectors considered, the employment impact of innovation is positive, particularly in industries that have a strong scientific and technological base. A negative impact of innovation on employment is, on the contrary, found among large firms, capital-intensive industries and in all financial-related sectors (banking, insurance and other financial services). In these industries the labour-saving effect of innovation seems to be linked to the widespread use of Information and Communication Technologies (ICTs) which displace the least qualified employees. In the case of Italy, an overall negative impact of innovation on employment is found. It is argued that this result is affected by the Italian economy's specialisation in the most traditional service industries.

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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: 309-318

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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:309-318

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References

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  1. Petit, Pascal, 1993. "Employment and technical change," CEPREMAP Working Papers (Couverture Orange) 9330, CEPREMAP.
  2. Rinaldo Evangelista, 2000. "Sectoral Patterns Of Technological Change In Services," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 183-222.
  3. Vivarelli, Marco & Evangelista, Rinaldo & Pianta, Mario, 1996. "Innovation and employment in Italian manufacturing industry," Research Policy, Elsevier, vol. 25(7), pages 1013-1026, October.
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Cited by:
  1. Francesco Bogliacino & Marco Vivarelli, 2010. "The job creation effect of R&D expenditures," JRC-IPTS Working Papers on Corporate R&D and Innovation 2010-04, Institute of Prospective Technological Studies, Joint Research Centre.
  2. Alex Coad & Rekha Rao, 2011. "The firm-level employment effects of innovations in high-tech US manufacturing industries," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 255-283, May.
  3. Sotiris Zygiaris, 2009. "Regional Innovation System Failures And Highlights," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(2), pages 54-76, DECEMBER.
  4. repec:hal:journl:halshs-00175042 is not listed on IDEAS
  5. Persefoni Tsaliki, 2008. "Economic development, human capital and technical change: the question of machinery revisited," International Review of Economics, Springer, vol. 55(4), pages 363-371, December.
  6. Francesco Bogliacino & Marco Vivarelli, 2011. "Innovation and employment: Some evidence from European sectors," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1178, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  7. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute for the Study of Labor (IZA).
  8. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1325-1334.
  9. Jaan Masso & Priit Vahter, 2011. "The Link Between Innovation And Productivity In Estonian Service Sector," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 80, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  10. repec:hal:journl:halshs-00155762 is not listed on IDEAS
  11. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.

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