Assessment of the Effect of Technological Innovations on Unemployment in the European Union Countries

Innovation and unemployment are two economic elements related to each other that have been constantly analyzed in the debates from beginning of 21st century. A classical question is whether innovation creates or destroys jobs. The conventional approach contemplates as a transformation instrument an economy, resulting growth jobs creation. Another points out various mechanisms which can compensate primary effect innovations cause ultimate on labour demand be unclear. In view fact there many different explanations about impact demand, this paper, after analysis theoretical empirical scientific literature field, provides with dependent variable. authors use data 28 European Union countries for period 1992–2016 pursue research how technological affect rate. There core independent variables – expenditure R&D (research development) number patent applications main proxies innovations. Control included model well. was estimated using dynamic two-step System Generalized Method Moments (GMM-SYS) panel system. After composition 12 estimations model, results suggest that, some cases, unemployment.