The impact of foreign technological innovation on domestic employment via the industry mix

Luisa Gagliardi

Research Policy, 2019, vol. 48, issue 6, 1523-1533

Abstract: This paper analyses how differences in the industry composition of British local labour markets moderate the impact of foreign technological competition in manufacturing on domestic employment, both overall and across subsamples of workers with different skill levels (high, intermediate and low). To this scope, it exploits both variations across industries in the exposure to the introduction of new technologies, and information on how such industries are combined in shaping the industrial structure of each place. The analysis shows that places that specialise in industries undergoing substantial technological competition due to foreign innovation experience a reduction in total employment that is 4.5% larger than places less exposed based on their initial industry mix. This negative performance is mainly explained by a decrease in the employment opportunities for intermediate-skilled workers. Limited support is found for successful adaptation trajectories over time across British local labour markets.

Keywords: Industry mix; Local labour markets; Employment; Technological competition; Skills (search for similar items in EconPapers)
JEL-codes: J21 J24 O33 R12 R23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S004873331930068X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:48:y:2019:i:6:p:1523-1533

DOI: 10.1016/j.respol.2019.03.005

Access Statistics for this article

Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

More articles in Research Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().