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Productive robots and industrial employment: the role of national innovation systems

Productive robots and industrial employment: the role of national innovation systems
Productive robots and industrial employment: the role of national innovation systems
In a model with robots, automatable and non-automatable production, we study robot-labour substitutions and show how they are influenced by a country's "innovation system". Substitution depends on demand and production elasticities, the country's innovation capabilities and openness. Making use of World Economic Forum data we estimate the relationship for thirteen countries and find that countries with poor innovation capabilities substitute robots for workers much more than countries with richer innovation capabilities, which might complement them. Innovation capabilities play a bigger role in the high-tech electronics sector than in other manufacturing and play a limited role in non-manufacturing.
Robots-employment substitution, automatable production, innovation capabilities, robots and comparative advantage, industrial allocations
0020-6598
Kapetaniou, Chrystalla
67f0d2f2-4735-4474-8713-f7f53baa6c6d
Pissarides, Christopher A.
1fcadf2e-f341-4336-8054-32c14681e665
Kapetaniou, Chrystalla
67f0d2f2-4735-4474-8713-f7f53baa6c6d
Pissarides, Christopher A.
1fcadf2e-f341-4336-8054-32c14681e665

Kapetaniou, Chrystalla and Pissarides, Christopher A. (2024) Productive robots and industrial employment: the role of national innovation systems. International Economic Review. (doi:10.1111/iere.12738). (In Press)

Record type: Article

Abstract

In a model with robots, automatable and non-automatable production, we study robot-labour substitutions and show how they are influenced by a country's "innovation system". Substitution depends on demand and production elasticities, the country's innovation capabilities and openness. Making use of World Economic Forum data we estimate the relationship for thirteen countries and find that countries with poor innovation capabilities substitute robots for workers much more than countries with richer innovation capabilities, which might complement them. Innovation capabilities play a bigger role in the high-tech electronics sector than in other manufacturing and play a limited role in non-manufacturing.

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Accepted/In Press date: 1 August 2024
Keywords: Robots-employment substitution, automatable production, innovation capabilities, robots and comparative advantage, industrial allocations

Identifiers

Local EPrints ID: 494842
URI: http://eprints.soton.ac.uk/id/eprint/494842
ISSN: 0020-6598
PURE UUID: 19e4fb8f-07b0-43c7-8fde-26b60b668851

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Date deposited: 17 Oct 2024 16:35
Last modified: 17 Oct 2024 16:41

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Contributors

Author: Chrystalla Kapetaniou
Author: Christopher A. Pissarides

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