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Innovation and the Economy

  • Jonathan Michie
  • Christine Oughton
  • Mario Pianta

Unemployment has remained at relatively high levels across most European countries for a generation now. There have been a number of suggested explanations for this, with correspondingly different policy implications. Two of the major hypotheses relate, first, to the impact on the European economies from increased international competition, and 'globalisation' more generally, and, secondly, to the effects of new technology and innovation. The effects of both globalisation and technology on growth and employment in Europe have been researched over the past two years through an EU-funded project, the results of which, relating in particular to innovation, are reported in this Special Issue of the International Review of Applied Economics. (The results relating to globalisation were reported in a Special Issue of the Journal of Interdisciplinary Economics , Volume 13.) It is clear from the empirical work reported that the effects of technological innovation have been mixed. There is no doubt that some innovation has had a negative effect on employment, without the compensatingly positive effects that new technology usually brings in its wake. However, in high technology manufacturing sectors there is scope for boosting both productivity and employment. But this requires an appropriate policy environment, conducive to increased investment in capital, R&D and the workforce itself.

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Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 16 (2002)
Issue (Month): 3 ()
Pages: 253-264

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Handle: RePEc:taf:irapec:v:16:y:2002:i:3:p:253-264
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  1. repec:cup:cbooks:9780521633277 is not listed on IDEAS
  2. Grazia Ietto-Gillies, 2000. "What Role for Multinationals in the New Theories of International Trade and Location?," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(4), pages 413-426.
  3. Jan Fagerberg, 1999. "The Economic Challenge for Europe: Adapting to Innovation-Based Growth," Working Papers 2, Centre for Technology, Innovation and Culture, University of Oslo.
  4. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
  5. repec:cup:cbooks:9780521633611 is not listed on IDEAS
  6. Stephen Nickell & John Van Reenen, 2001. "Technological Innovation and Performance in the United Kingdom," CEP Discussion Papers dp0488, Centre for Economic Performance, LSE.
  7. Yïlmaz AKYÜZ, 2000. "The Debate On The International Financial Architecture: Reforming The Reformers," UNCTAD Discussion Papers 148, United Nations Conference on Trade and Development.
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