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date: 12 July 2020

Abstract and Keywords

The relationship between innovation and employment is a complex one and has long been a topical issue in economic theory. The literature on innovation and employment has addressed different research questions rooted in several streams of research. This article examines the enormous body of scholarly research on this topic within the advanced economies. First, the various different perspectives, the scope, and types of innovations are considered, identifying the different employment effects they may have. Second, effects on the quantity of employment are reviewed at the firm, industry, and macroeconomic level. Third, changes in the quality of employment are examined, considering the effects on skills and wages, and the impact of organizational innovation, again at different levels of analysis. Finally, this article presents a summary of stylized facts with a discussion of future research issues.

Keywords: innovation, employment, economic theory, scholarly research, firm, industry

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