The generative relationship between job quality, innovation, and employment

Christopher Mathieu,Susanne Boethius

doi:10.46364/ejwi.v6i2.803

Abstract

Recent qualitative and quantitative research on the interrelationships between innovation, job quality and employment shows a strong association between job quality and product, process, and to a lesser extent organizational innovation. This is theorized as the interaction of two systems – job quality and innovation systems. Increased employment and improved job quality are found to result from innovation, while specific employment dimensions are found to impact innovation and job quality. Much of the evidence for this recursive interaction between innovation, job quality and employment derives from qualitative and quantitative studies carried out under the Horizon 2020 project QuInnE that specifically targeted these interrelations for analysis. Findings largely support the skill-biased technical change thesis, leading to the conclusion that while innovation tends to improve job quality, it will exacerbate societal inequalities. Strong evidence is also presented from several studies that higher innovation results from higher job quality, in line with previous research. None of these relationships are found to operate in a deterministic manner, and the actions of management, workers and the social partners play important mediating roles.

Highlights

The European Union’s concern with increasing and improving employment, social inclusion, innovation, and competitiveness were core to the Europe 2020 Strategy (European Commission 2010)
The purpose of this paper is to present in summary form the conceptual approach and central empirical results and conclusions of the QuInnE project, on the relationships between innovation, employment and job quality
This result is not surprising for product innovation, which can reasonably be assumed to lead to increased market share and new market opportunities

Summary

Introduction

The European Union’s concern with increasing and improving employment, social inclusion, innovation, and competitiveness were core to the Europe 2020 Strategy (European Commission 2010). There is an accepted wisdom that innovation is essential to competitiveness and growth (Mazzucato & Perez, 2015), a fear that innovation may have detrimental effects on employment (Brynjolfsson & McAfee, 2011; Frey & Osborne, 2017), and not much understanding of (or interest in?) the connection between innovation and job quality (Duhautois et al, 2020). The latter is puzzling as aspects of job quality such as training and skill development are a flagship initiative in the Europe 2020 Strategy.

Objectives

Methods

Findings

Discussion

Conclusion