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Innovation and employment in economic cycles

Author

Listed:
  • Mario Pianta

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

  • Matteo Lucchese

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

Abstract

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.

Suggested Citation

  • Mario Pianta & Matteo Lucchese, 2012. "Innovation and employment in economic cycles," Working Papers 1203, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2012.
    • Handle: RePEc:urb:wpaper:12_03
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; Cycles; Employment; Demand.;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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