The Employment Trilemma in the European Union: Linking Academia, Industry, and Sustainability Through Dynamic Panel Evidence

Andrei Hrebenciuc, Silvia-Elena Iacob, Alexandra Constantin (), Maxim Cetulean and Georgiana-Tatiana Bondac
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Andrei Hrebenciuc: Department of Economics and Economic Policies, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Silvia-Elena Iacob: Department of Economic Doctrines and Communication, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Alexandra Constantin: Department of Economic Doctrines and Communication, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Maxim Cetulean: Doctoral School of Economics I, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Georgiana-Tatiana Bondac: Doctoral School of Economic and Humanities, “Valahia” University of Târgoviște, 130004 Târgoviște, Romania

Sustainability, 2025, vol. 17, issue 13, 1-18

Abstract: Amid growing concern about labour market resilience in an era of digital and green transitions, this study carries out an investigation on how academic innovation and industrial transformation jointly shape sustainable employment outcomes across EU-27 member states. We frame this inquiry within the emerging concept of the “employment trilemma”, which posits inherent tension between competitiveness, innovation, and social inclusiveness in modern economies. Drawing on a dynamic panel dataset (2005–2023) and employing System SMM estimations, we test the hypothesis that the alignment of academic innovation systems and industrial transformation strategies enhances long-term employment sustainability. Our results reveal a nuanced relationship: academic innovation significantly supports employment in countries with high knowledge absorption capacity, whereas industrial transformation contributes positively only when embedded in cohesive, inclusive economic frameworks. Thus, these findings provide valuable insights for international business due to their emphasis on the importance of cross-sectoral collaboration, policy synchronisation, and investment in human capital for firms navigating increasingly volatile labour markets. Likewise, the study offers actionable insights for business leaders, policymakers, and universities striving to balance innovation with equitable labour market outcomes in an integrated European economy.

Keywords: sustainable development; academic–industry collaboration; digital transformation; labour market; case studies in sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:13:p:6125-:d:1694421

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