The impact of innovation on employment and skills in services. Evidence from Italy

Savona, Maria and Rinaldo, E (2002) The impact of innovation on employment and skills in services. Evidence from Italy. International Review of Applied Economics, 16 (3). pp. 309-318. ISSN 0269-2171

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Abstract

This article investigates the employment impact of innovation in services,
using the data gathered through the 1993±95 Italian innovation survey. The empirical
evidence shows that the impact of innovation on employment varies greatly across
industries and according to the level of qualification of the labour force. Among small firms
and in less than a half of the service sectors considered, the employment impact of
innovation is positive, particularly in industries that have a strong scientific and
technological base. A negative impact of innovation on employment is, on the contrary,
found among large firms, capital-intensive industries and in all financial-related sectors
(banking, insurance and other financial services). In these industries the labour-saving
effect of innovation seems to be linked to the widespread use of Information and
Communication Technologies (ICTs) which displace the least qualified employees. In the
case of Italy, an overall negative impact of innovation on employment is found. It is argued
that this result is affected by the Italian economy’s specialisation in the most traditional
service industries.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Depositing User: Maria Savona
Date Deposited: 06 Feb 2012 20:44
Last Modified: 31 Jul 2013 12:44
URI: http://sro.sussex.ac.uk/id/eprint/27806
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