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Innovation effects on employment in high-tech and low-tech industries: evidence from large international firms within the triad

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  • L. Aldieri

    (Parthenope University)

  • C. P. Vinci

    (University of Salerno)

Abstract

In this paper we investigate the role of financial shocks, such as the economic crisis since 2006, in the reallocation process of employment flows in high-tech and low-tech industries. The contributions of the paper to the literature are threefold. First, a general framework of employment growth is estimated by using a dataset made of 879 large international firms observed for the period 2002–2010 and localized in three economic areas: USA, Japan and Europe. Second, we develop a database merging the firms’ data with EPO patents data. In particular, the innovation variable is proxied by the R&D capital stock. Third contribution to the literature is to analyze the extent to which the economic crisis may affect the sensitivity of employment with respect to own innovation but also with respect to outside innovation, the R&D spillovers, in high-tech and low-tech industries. The empirical results suggest some important and significant results. This comparative finding could be the source of relevant industrial policy implications.

Suggested Citation

  • L. Aldieri & C. P. Vinci, 2018. "Innovation effects on employment in high-tech and low-tech industries: evidence from large international firms within the triad," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(2), pages 229-243, June.
  • Handle: RePEc:spr:eurasi:v:8:y:2018:i:2:d:10.1007_s40821-017-0081-9
    DOI: 10.1007/s40821-017-0081-9
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    2. Luca VOTA, 2022. "Employment Impact Of Firms' Innovation: What Is The Role Of Regional Institutions? Evidence From Italy," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 11-24, June.
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    4. Barbieri, Laura & Mussida, Chiara & Piva, Mariacristina & Vivarelli, Marco, 2019. "Testing the employment and skill impact of new technologies: A survey and some methodological issues," GLO Discussion Paper Series 397, Global Labor Organization (GLO).
    5. Dosi, G. & Piva, M. & Virgillito, M.E. & Vivarelli, M., 2021. "Embodied and disembodied technological change: The sectoral patterns of job-creation and job-destruction," Research Policy, Elsevier, vol. 50(4).
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    12. Dae Soo Choi & Chang Soo Sung & Joo Y. Park, 2020. "How Does Technology Startups Increase Innovative Performance? The Study of Technology Startups on Innovation Focusing on Employment Change in Korea," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    13. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2019. "Beyond R&D: the role of embodied technological change in affecting employment," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1151-1171, September.
    14. Muhammad Arif Khan & Xuezhi Qin & Khalil Jebran, 2020. "Uncertainty and leverage nexus: does trade credit matter?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 355-389, September.
    15. Yanhong Liu & Xinjian Huang & Weiliang Chen, 2019. "The Dynamic Effect of High-Tech Industries’ R&D Investment on Energy Consumption," Sustainability, MDPI, vol. 11(15), pages 1-23, July.
    16. Priscilla Twumasi Baffour & F. Ebo Turkson & Agyapomaa Gyeke-Dako & Abena D. Oduro & Emmanuel Nii Abbey, 2020. "Innovation and employment in manufacturing and service firms in Ghana," Small Business Economics, Springer, vol. 54(4), pages 1153-1164, April.
    17. Jorge Expósito López & José Javier Romero-Díaz de la Guardia & María del Carmen Olmos-Gómez & Ramón Chacón-Cuberos & Eva María Olmedo-Moreno, 2019. "Enhancing Skills for Employment in the Workplace of the Future 2020 Using the Theory of Connectivity: Shared and Adaptive Personal Learning Environments in a Spanish Context," Sustainability, MDPI, vol. 11(15), pages 1-18, August.
    18. Luigi Aldieri & Concetto Paolo Vinci, 2018. "Green Economy and Sustainable Development: The Economic Impact of Innovation on Employment," Sustainability, MDPI, vol. 10(10), pages 1-11, October.
    19. Aldieri, Luigi & Grafström, Jonas & Paolo Vinci, Concetto, 2020. "Job Creation in the Wind Power Sector Through Marshallian and Jacobian Knowledge Spillovers," Ratio Working Papers 340, The Ratio Institute.
    20. Jens Horbach & Christian Rammer, 2020. "Circular economy innovations, growth and employment at the firm level: Empirical evidence from Germany," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 615-625, June.
    21. Luigi Aldieri & Jonas Grafström & Concetto Paolo Vinci, 2021. "The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector," Energies, MDPI, vol. 14(14), pages 1-16, July.
    22. Gupta, Ashish, 2024. "Impact of innovation on employment: A review of literature," MPRA Paper 120383, University Library of Munich, Germany.
    23. Yuliya Frolova & Monowar Mahmood, 2019. "Variations in employee duty orientation: impact of personality, leadership styles and corporate culture," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 423-444, December.

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    More about this item

    Keywords

    Regional economics; Innovation; R&D spillovers; Employment;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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