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Productive robots and industrial employment: the role of national innovation systems

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  • Chrystalla Kapetaniou
  • Christopher A. Pissarides

Abstract

In a model with robots, and automatable and non-automatable human tasks, we examine robot-labour substitutions and show how they are influenced by a country's 'innovation system'. Substitution depends on demand and production elasticities, and other factors influenced by the innovation system. Making use of World Economic Forum data we estimate the relationship for thirteen countries and find that countries with poor innovation capabilities substitute robots for workers much more than countries with richer innovation capabilities, which generally complement them. In transport equipment and non-manufacturing robots and workers are stronger substitutes than in other manufacturing.

Suggested Citation

  • Chrystalla Kapetaniou & Christopher A. Pissarides, 2023. "Productive robots and industrial employment: the role of national innovation systems," CEP Discussion Papers dp1906, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1906
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    References listed on IDEAS

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    More about this item

    Keywords

    robots-employment substitution; automatable tasks; complementary task creation; innovation environment; industrial allocations;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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