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Production and employment impacts of new technologies: analysis for biotechnology

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  • Wydra, Sven

Abstract

Biotechnology is often regarded as a key technology with high potential for far-reaching social, environmental and economic impacts. Among others, the development and diffusion of biotechnology may have considerable economic effects on production and employment. This paper analyzes the economic impacts of different diffusion paths of biotechnology in some major application fields. Bottom-up technology information from literature, expert judgements and explicit scenario assumptions for various impact factors are combined and integrated in an input-output framework to calculate direct and indirect production and employment effects. The impact on net production and employment differs greatly between the different application sectors and depends on the respective importance of the various impact mechanisms. The indirect economic effects are rather high and exceed direct economic effects. These findings show the importance of a bottom-up approach as well as the consideration of indirect economic effects for appropriate analyses of the impact of biotechnology.

Suggested Citation

  • Wydra, Sven, 2009. "Production and employment impacts of new technologies: analysis for biotechnology," FZID Discussion Papers 08-2009, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  • Handle: RePEc:zbw:fziddp:200908
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    References listed on IDEAS

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    1. Vivarelli, Marco, 2007. "Innovation and Employment: A Survey," IZA Discussion Papers 2621, Institute of Labor Economics (IZA).
    2. Rosenberg-Yunger, Zahava R.S. & Daar, Abdallah S. & Singer, Peter A. & Martin, Douglas K., 2008. "Healthcare sustainability and the challenges of innovation to biopharmaceuticals in Canada," Health Policy, Elsevier, vol. 87(3), pages 359-368, September.
    3. Anthony Arundel, 2003. "Biotechnology Indicators and Public Policy," OECD Science, Technology and Industry Working Papers 2003/5, OECD Publishing.
    4. Petit, Pascal, 1993. "Employment and technical change," CEPREMAP Working Papers (Couverture Orange) 9330, CEPREMAP.
    5. Chris Freeman, 2003. "Policies for Developing New Technologies," SPRU Working Paper Series 98, SPRU - Science Policy Research Unit, University of Sussex Business School.
    6. Hopkins, Michael M. & Martin, Paul A. & Nightingale, Paul & Kraft, Alison & Mahdi, Surya, 2007. "The myth of the biotech revolution: An assessment of technological, clinical and organisational change," Research Policy, Elsevier, vol. 36(4), pages 566-589, May.
    7. Marco Vivarelli, 1995. "The Economics of Technology and Employment," Books, Edward Elgar Publishing, number 458.
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    More about this item

    Keywords

    Economic impacts of technologies; employment effects; input-output model; biotechnology;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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