Innovation—Unemployment Nexus: The case of EU countries


Yildirim D. Ç., Yildirim S., Erdogan S., Kantarci T.

International Journal of Finance and Economics, cilt.27, sa.1, ss.1208-1219, 2022 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 27 Sayı: 1
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1002/ijfe.2209
  • Dergi Adı: International Journal of Finance and Economics
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, Aerospace Database, Business Source Elite, Business Source Premier, Communication Abstracts, EconLit, Geobase, Metadex, vLex, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.1208-1219
  • Anahtar Kelimeler: Cluster analysis, innovation, panel data, threshold model, unemployment
  • İstanbul Gelişim Üniversitesi Adresli: Hayır

Özet

In order to achieve a sustainable growth and development process in a globalised competitive environment, the effect of monitoring the technological developments of the national economies is a necessity. Innovation, shown as a cause of technological developments, contributes to the transformation of technology into social and economic benefits. Innovation changes the structure of employment. However, there is no consensus in the literature about how innovation affects employment. Some suggest that technological innovations will lead to an increase in unemployment as a result of the substitution of machines instead of labour. The others state that technological innovations can improve the working life and create a reducing effect of unemployment as a result of every technological innovation creating their own fields of work. The aim of this study is to examine the effects of innovation on unemployment. The data of 12 EU countries with high and relatively low level of innovation were analysed with the panel threshold model for the period of 1998–2015. Innovation in high and low regimes, has effects that will increase unemployment. Technological development increases the unemployment rate in both country groups in both regimes of innovation level.