DOI :10.26650/B/SS10.2024.013.026   IUP :10.26650/B/SS10.2024.013.026    Full Text (PDF)

Possible Impacts of Innovation on Employment

Sayım Yorgun

As defined by the Oslo Manual, innovation encompasses novel or significantly improved products, processes, marketing methods, or organizational approaches. It engenders both creative and destructive outcomes, making it an indispensable yet challenging process. While innovation undeniably fuels economic development, competitiveness, and welfare, its impact on employment remains contentious. The innovation-employment relationship’s exploration at various levels, including firms, sectors, and regions, reveals diverse effects. Innovation, being a dual force of job creation and destruction, amplifies discussions on the synergy between economic growth and employment. This chapter delves into the types of innovation and their employment effects, providing evaluations at firm and sector levels. Drawing from the research in the literature, predictions are formulated, and insights are garnered to guide discussions. Acknowledging that innovation is a pivotal catalyst for sustainable development, it’s imperative to recognize and mitigate the disruptions it may cause. Research underscores that innovation significantly influences economic growth with varying effects on employment contingent on its scope, effectiveness, and priorities.


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