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Unemployment and Innovation Patterns: The Critical Role of Coordination

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  • Gatti, Donatella

Abstract

This paper explores cross-country differences in unemployment and innovation patterns from the perspective of "comparative institutional analysis". A generalized efficiency wage model is proposed for the determination of equilibrium unemployment and innovation within two alternative scenarios: firms coordinating through either market mechanisms or social networks. The mode of coordination is shown to affect firms' choices of either radical or incremental innovations and their responses to competitive pressure. Higher unemployment may result as a consequence of specialization along innovation trajectories that increase job precariousness. Copyright 2000 by Oxford University Press.

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  • Gatti, Donatella, 2000. "Unemployment and Innovation Patterns: The Critical Role of Coordination," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(3), pages 521-544, September.
    • Handle: RePEc:oup:indcch:v:9:y:2000:i:3:p:521-44
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    Cited by:

    1. Gatti, Donatella, 2000. "Competence, knowledge, and the labour market: the role of complementarities," Discussion Papers, Research Unit: Economic Change and Employment FS I 00-302, WZB Berlin Social Science Center.
    2. Donatella Gatti, 2009. "Macroeconomic effects of ownership structure in OECD countries ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(5), pages 901-928, October.
    3. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    4. Durmuş Çagri Yildirim & Seda Yildirim & Seyfettin Erdogan & Tugba Kantarci, 2022. "Innovation—Unemployment Nexus: The case of EU countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1208-1219, January.
    5. Chee‐Hong Law & Siong Hook Law, 2024. "The non‐linear impacts of innovation on unemployment: Evidence from panel data," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 402-424, January.
    6. Kristina Matuzeviciute & Mindaugas Butkus & Akvile Karaliute, 2017. "Do Technological Innovations Affect Unemployment? Some Empirical Evidence from European Countries," Economies, MDPI, vol. 5(4), pages 1-19, December.
    7. Xia, Tianjiao & Liu, Xiaohui, 2021. "Cultural values and innovation: The mediating role of entrepreneurial learning capacity," Journal of International Management, Elsevier, vol. 27(1).

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