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The impact of foreign technological innovation on domestic employment via the industry mix

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  • Gagliardi, Luisa
Abstract
This paper analyses how differences in the industry composition of British local labour markets moderate the impact of foreign technological competition in manufacturing on domestic employment, both overall and across subsamples of workers with different skill levels (high, intermediate and low). To this scope, it exploits both variations across industries in the exposure to the introduction of new technologies, and information on how such industries are combined in shaping the industrial structure of each place. The analysis shows that places that specialise in industries undergoing substantial technological competition due to foreign innovation experience a reduction in total employment that is 4.5% larger than places less exposed based on their initial industry mix. This negative performance is mainly explained by a decrease in the employment opportunities for intermediate-skilled workers. Limited support is found for successful adaptation trajectories over time across British local labour markets.

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  • Gagliardi, Luisa, 2019. "The impact of foreign technological innovation on domestic employment via the industry mix," Research Policy, Elsevier, vol. 48(6), pages 1523-1533.
    • Handle: RePEc:eee:respol:v:48:y:2019:i:6:p:1523-1533
    DOI: 10.1016/j.respol.2019.03.005
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    Cited by:

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    2. Onea Ioana Alexandra, 2020. "Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard," Management & Marketing, Sciendo, vol. 15(4), pages 605-620, December.
    3. Bontadini, Filippo & Evangelista, Rinaldo & Meliciani, Valentina & Savona, Maria, 2024. "Technology, global value chains and functional specialisation in Europe," Research Policy, Elsevier, vol. 53(2).
    4. Sefa Awaworyi Churchill & Bin Peng & Russell Smyth & Quanda Zhang, 2022. "R&D intensity and income inequality in the G7: 1870–2016," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(3), pages 263-282, July.
    5. Sinha, Avik & Adhikari, Arnab & Jha, Ashish Kumar, 2021. "Innovational Duality and Sustainable Development: Finding Optima amidst Socio-Ecological Policy Trade-off in post-COVID-19 Era," MPRA Paper 110946, University Library of Munich, Germany, revised 2021.
    6. Dam Duc Le, 2023. "Gthe Impact Of Technological Innovation On Labor Structure: Evidence From Vietnam Smes," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 251-288, May.
    7. Keraga, Mezid N. & Stephan, Andreas, 2023. "Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey," Working Paper Series in Economics and Institutions of Innovation 494, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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    More about this item

    Keywords

    Industry mix; Local labour markets; Employment; Technological competition; Skills;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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