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Productive Robots and Industrial Employment: The role of national innovation systems

Author

Listed:
  • Chrystalla Kapetaniou

    (Nesta)

  • Christopher A Pissarides

    (London School of Economics (LSE)
    University of Cyprus)

Abstract
We examine robot-labour substitutions in manufacturing and some other sectors in industrial countries. We show that the degree of substitution depends on demand and production elasticities. In multi-country empirical work its sign and magnitude crucially depends on a country's innovation environment. Making use of World Economic Forum data we estimate that countries with poor innovation capabilities substitute robots for workers but countries with richer innovation capabilities complement them. In non-manufacturing and transport equipment robots and workers are stronger substitutes than in other manufacturing. Our results can be rationalized by appeal to both firm objectives and international trade.

Suggested Citation

  • Chrystalla Kapetaniou & Christopher A Pissarides, 2020. "Productive Robots and Industrial Employment: The role of national innovation systems," Discussion Papers 2023, Centre for Macroeconomics (CFM).
    • Handle: RePEc:cfm:wpaper:2023
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    robots-employment substitution; innovation enviromnent; company objectives; industrial allocations;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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