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Innovation and employment in economic cycles

  • Mario Pianta

    ()

    (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

  • Matteo Lucchese

    ()

    (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

This article explores the way economic cycles influence the relationship between innovation and employment in manufacturing industries. We investigate whether the ups and downs of cycles alter the possibility of exploiting technological opportunities and affecting patterns of job creation. A model that explains industries’ employment change by combining technology and demand is proposed; the empirical test is based on data on 21 manufacturing sectors from 1995 to 2007 for Germany, France, Italy, the UK, the Netherlands and Spain. Results show that, in upswings, employment change is affected by new products, exports and wage growth, while during downswings new processes contribute to restructuring and job losses.

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File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_12_03.pdf
File Function: First version, 2012
Download Restriction: no

Paper provided by University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini in its series Working Papers with number 1203.

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Length: 29 pages
Date of creation: 2012
Date of revision: 2012
Handle: RePEc:urb:wpaper:12_03
Contact details of provider: Web page: http://www.econ.uniurb.it/

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  1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  2. Francesco Bogliacino & Matteo Lucchese & Mario Pianta, 2011. "Job creation in business services: innovation, demand, polarisation," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-04, Institute of Prospective Technological Studies, Joint Research Centre.
  3. 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.
  4. Mariacristina Piva & Marco Vivarelli, 2005. "Innovation and Employment: Evidence from Italian Microdata," Journal of Economics, Springer, vol. 86(1), pages 65-83, October.
  5. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
  6. Freeman, Chris & Louca, Francisco, 2001. "As Time Goes By: From the Industrial Revolutions to the Information Revolution," OUP Catalogue, Oxford University Press, number 9780199241071, March.
  7. Harrison, Rupert & Jaumandreu, Jordi & Mairesse, Jacques & Peters, Bettina, 2014. "Does innovation stimulate employment? A firm-level analysis using comparable micro-data from four European countries," International Journal of Industrial Organization, Elsevier, vol. 35(C), pages 29-43.
  8. Layard, R. & Nickell, S., 1991. "Unemployment in the OECD Countries," Economics Series Working Papers 99130, University of Oxford, Department of Economics.
  9. Hall, Bronwyn H. & Mairesse, Jacques & Lotti, Francesca, 2006. "Employment, Innovation, and Productivity: Evidence from Italian Microdata," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  10. Matteo Lucchese & Mario Pianta, 2011. "Cycles and innovation," Working Papers 1103, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
  11. Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April.
  12. Blackburn, Keith & Pelloni, Alessandra, 2004. "On the relationship between growth and volatility," Economics Letters, Elsevier, vol. 83(1), pages 123-127, April.
  13. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-84, April.
  14. Caballero, Ricardo J & Hammour, Mohamad L, 1994. "The Cleansing Effect of Recessions," American Economic Review, American Economic Association, vol. 84(5), pages 1350-68, December.
  15. Joseph E. Stiglitz, 1993. "Endogenous Growth and Cycles," NBER Working Papers 4286, National Bureau of Economic Research, Inc.
  16. Francesco Bogliacino & Mario Pianta, 2010. "Profits, R&D and Innovation: a Model and a Test," JRC-IPTS Working Papers on Corporate R&D and Innovation 2010-05, Institute of Prospective Technological Studies, Joint Research Centre.
  17. Paul Gaggl & Sandra Steindl, 2007. "Business Cycles and Growth: A Survey," WIFO Working Papers 308, WIFO.
  18. Bogliacino, Francesco & Pianta, Mario, 2010. "Innovation and Employment: a Reinvestigation using Revised Pavitt classes," Research Policy, Elsevier, vol. 39(6), pages 799-809, July.
  19. Daniele Archibugi, 2001. "Pavitt'S Taxonomy Sixteen Years On: A Review Article," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(5), pages 415-425.
  20. Malerba, Franco & Orsenigo, Luigi, 1997. "Technological Regimes and Sectoral Patterns of Innovative Activities," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 83-117.
  21. Evangelista, Rinaldo & Savona, Maria, 2003. "Innovation, employment and skills in services. Firm and sectoral evidence," Structural Change and Economic Dynamics, Elsevier, vol. 14(4), pages 449-474, December.
  22. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  23. Valeria Mastrostefano & Mario Pianta, 2009. "Technology and jobs," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(8), pages 729-741.
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