IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v4y2024i11d10.1007_s43546-024-00733-3.html
   My bibliography  Save this article

Effects of product and process innovation on growth and unemployment

Author

Listed:
  • Hiroaki Sasaki

    (Kyoto University)

Abstract

In economic growth theory, product and process innovations are critical factors contributing to technological progress. This study constructs an economic growth model that considers product and process innovations and theoretically investigates how these two types of innovation affect economic growth and unemployment rates. Using our model, based on Zagler (Int Rev Appl Econ 18:209–224, 2004), we obtain the following three main findings: (1) an increase in the efficiency of product innovation increases both the economic growth and unemployment rates; (2) an increase in the efficiency of process innovation increases the economic growth rate but does not affect the unemployment rate; and (3) a decrease in labor allocation to product innovation and an increase in labor allocation to process innovation in the R & D sector increase the economic growth rate and decrease the unemployment rate depending on the conditions. These findings suggest that to simultaneously raise employment and increase economic growth, we need not only a policy for fostering product innovation but also another policy to improve employment.

Suggested Citation

  • Hiroaki Sasaki, 2024. "Effects of product and process innovation on growth and unemployment," SN Business & Economics, Springer, vol. 4(11), pages 1-32, November.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:11:d:10.1007_s43546-024-00733-3
    DOI: 10.1007/s43546-024-00733-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-024-00733-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-024-00733-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Potential demand; Actual demand; Unemployment; Economic growth; Product and process innovation; Monopolistic competition;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:4:y:2024:i:11:d:10.1007_s43546-024-00733-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.