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Erschienen in:
2008 | OriginalPaper | Buchkapitel
Employment Effects of Innovation Activities
Erschienen in: Innovation and Firm Performance
Verlag: Physica-Verlag HD
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The question of how technological progress affects the employment situation is an old one and has long been the focus of theoretical and empirical industrial organisation research as well as lively public discussions.
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The controversial debates on this issue mainly result from the fact that, from a theoretical point of view, different channels exist through which innovations can destroy existing jobs (displacement effects) but that there are also several mechanisms through which innovations may create new jobs (compensation effects). In addition, product and process innovations influence employment via different channels. The overall impact depends on a number of firm-, sector- as well as country-specific factors.