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Unemployment and Innovation Patterns. The role of business coordination and market Competition


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  • Donatella Gatti

    (PSE & IZA)


The paper explores the institutional determinants of differences in European, Japanese and American unemployment and innovation pattern in a „comparative institutional analysis“ perspective. Building on the definition of different modes of coordination among firms, the question is addressed as to how institutional settings affect firms’ innovation strategy. A generalized efficiency wage model is developed determining both equilibrium unemployment and innovation. The mode of coordination is shown to affect firms’ choice between radical and incremental innovations as well as firms’ response (in terms of innovation strategy) to increased competitive pressure. Higher unemployment may result as a consequence of specialization along innovation trajectories. -- In diesem Diskussions-Papier wird untersucht, welchen Einfluß institutionelle Determinanten auf die unterschiedlichen Muster von Arbeitslosigkeit und Innovation in Europa, in Japan und in den USA haben. Dies geschieht durch eine „vergleichende Institutionen-Analyse“. Ausgehend von unterschiedlichen Formen der Koordination zwischen Unternehmen ist die Analyse auf die Frage gerichtet, wie institutionelle Rahmenbedingungen die Entscheidung für eine bestimmte Innovationsstrategie von Unternehmen beeinflussen. In einem allgemeinen Effizienzlohn-Modell werden Gleichgewichts-Arbeitslosigkeit und Innovation bestimmt. Die je spezifische Form der Koordination wird dargestellt in ihrer Bedeutung für die Entscheidung von Unternehmen für eine radikale oder eine inkrementelle Innovationsstrategie. Sie wird außerdem auch daraufhin analysiert, wie die Unternehmen auf den gewachsenen Konkurrenzdruck reagieren und welche Entscheidungen sie hinsichtlich ihrer Innovationsstrategie fällen. Eine höhere Arbeitslosigkeit als Auswirkung von Spezialisierungen, ausgelöst durch innovationsbezogene Übergangsprozesse, ist nicht auszuschließen.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0507011.

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Date of creation: 08 Jul 2005
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Handle: RePEc:wpa:wuwpma:0507011

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  1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, September.
  2. Aoki, Masahiko, 1986. "Horizontal vs. Vertical Information Structure of the Firm," American Economic Review, American Economic Association, vol. 76(5), pages 971-83, December.
  3. Bruno AMABLE, 1996. "Croisssance et cycles endogènes induits par les innovations radicales et incrementales," Annales d'Economie et de Statistique, ENSAE, issue 44, pages 91-110.
  4. Aghion, Philippe & Howitt, Peter, 1991. "Growth and Unemployment," CEPR Discussion Papers 577, C.E.P.R. Discussion Papers.
  5. Soskice, David, 1996. "German technology policy, innovation, and national institutional frameworks," Discussion Papers, Research Unit: Economic Change and Employment FS I 96-319, Social Science Research Center Berlin (WZB).
  6. D. Gatti, 1997. "Flexible Technology, Unemployment and Effort: The Role of the Organization of the Firm," Working Papers ir97004, International Institute for Applied Systems Analysis.
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