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Employment-Innovation Nexus: A Theoretical Framework

Author

Listed:
  • Luigi Aldieri
  • Cristian Barra
  • Concetto Paolo Vinci

Abstract

This paper develops a theoretical model to explore how absorptive capacity influences the relation between innovation and employment. In particular, the aim of the model is to express all the possible forces underlying the transmission channels from the innovation process to the labor market and the importance of absorptive capacity in the employment-innovation relationship. Stated differently, absorptive capacity is a prerequisite for the effectiveness of innovation regarding employment outcomes. The empirical evidence within an international context supports and validates the predictions of our theoretical framework. Policy recommendations are provided for striking a balance between innovation processes and job creation.

Suggested Citation

  • Luigi Aldieri & Cristian Barra & Concetto Paolo Vinci, 2026. "Employment-Innovation Nexus: A Theoretical Framework," International Journal of Business and Management, Canadian Center of Science and Education, vol. 21(3), pages 1-89, May.
    • Handle: RePEc:ibn:ijbmjn:v:21:y:2026:i:3:p:89
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    References listed on IDEAS

    as
    1. Haim Regev, 1998. "Innovation, Skilled Labour, Technology And Performance In Israeli Industrial Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 301-324.
    2. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2012. "R&D and employment: An application of the LSDVC estimator using European microdata," Economics Letters, Elsevier, vol. 116(1), pages 56-59.
    3. A. Varga, 2006. "Spatial Knowledge Spillovers and University Research: Evidence from Austria," Springer Books, in: Innovation, Networks, and Knowledge Spillovers, chapter 10, pages 211-232, Springer.
    4. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    5. Van Roy, Vincent & Vértesy, Dániel & Vivarelli, Marco, 2018. "Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms," Research Policy, Elsevier, vol. 47(9), pages 1762-1776.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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