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Innovation and Employment Dynamics in European Regions

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  • Roberta Capello
  • Camilla Lenzi

Abstract

The impact of technological change on employment growth has long been debated. Most of the literature approaches this issue at the firm, the sectoral, or national level, whereas the regional approach has been largely neglected, especially in the European context. The article analyzes the relationship between innovation and employment growth at the regional level (Nomenclature of Territorial Units for Statistics - NUTS2) for twenty-seven European countries. Despite the undisputable difficulties of empirical analyses due to the fact that employment change depends on various aspects—such as macroeconomic and cyclical conditions as well as labor market dynamics and regulation—the results show that the direct effects of product and process innovation are moderated by specific regional structural characteristics, namely the region’s functional specialization and settlement structure. In particular, the effect of product innovation on regional employment is positive in regions with a larger presence of production functions, whereas the impact of process innovation is negative in metropolitan settings.

Suggested Citation

  • Roberta Capello & Camilla Lenzi, 2013. "Innovation and Employment Dynamics in European Regions," International Regional Science Review, , vol. 36(3), pages 322-353, July.
    • Handle: RePEc:sae:inrsre:v:36:y:2013:i:3:p:322-353
    DOI: 10.1177/0160017612462874
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    References listed on IDEAS

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    Cited by:

    1. Roberta Capello & Camilla Lenzi, 2016. "Innovation modes and entrepreneurial behavioral characteristics in regional growth," Small Business Economics, Springer, vol. 47(4), pages 875-893, December.
    2. Thomas Brenner & Matthias Duschl, 2015. "Causal dynamic effects in regional systems of technological activities: a SVAR approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 103-130, October.
    3. Anne Margarian & Cécile Détang-Dessendre & Aleksandra Barczak & Corinne Tanguy, 2022. "Endogenous rural dynamics: an analysis of labour markets, human resource practices and firm performance," SN Business & Economics, Springer, vol. 2(8), pages 1-33, August.
    4. Sheila Chapman & Valentina Meliciani, 2018. "Explaining regional disparities in Central and Eastern Europe : The role of geography and of structural change," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(3), pages 469-494, July.
    5. Völlmecke, Dominik & Jindra, Björn & Marek, Philipp, 2016. "FDI, human capital and income convergence—Evidence for European regions," Economic Systems, Elsevier, vol. 40(2), pages 288-307.
    6. Thomas Brenner, 2014. "Science, Innovation and National Growth," Working Papers on Innovation and Space 2014-03, Philipps University Marburg, Department of Geography.
    7. Alessandra Faggian & Elizabeth Mack & Heather Stephens, 2013. "Special Issue on Regional Economic Development," International Regional Science Review, , vol. 36(3), pages 263-266, July.
    8. Małgorzata Stec & Mariola Grzebyk, 2018. "The implementation of the Strategy Europe 2020 objectives in European Union countries: the concept analysis and statistical evaluation," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 119-133, January.
    9. Katarzyna Piwowar-Sulej & Krzysztof PodsiadÅ‚y, 2022. "Technological innovation and the labor market: The two-way non-reciprocal relationships with a focus on the confectionery industry in Poland," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(3), pages 135-171.
    10. Torben Schubert & Henning Kroll, 2016. "Universities’ effects on regional GDP and unemployment: The case of Germany," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 467-489, August.
    11. Kerstin Hotte & Melline Somers & Angelos Theodorakopoulos, 2022. "Technology and jobs: A systematic literature review," Papers 2204.01296, arXiv.org.

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