Technological interdependencies and employment changes in European industries

This work addresses the role of inter-sectoral innovation flows, which we frame as technological interdependencies, in determining sectoral employment dynamics. purpose is achieved through construction an indicator capturing amount R&D expenditures embodied backward linkages industries. We aim to find out whether having a more integrated production terms requiring inputs related lower demand for workers within sector. refer literature on innovation-employment nexus, knowledge spillovers and Global Value Chains, building upon structuralist evolutionary theoretical considerations. track flows change between industries taking advantage notion vertically sectors. The relevance this vertical dimension dynamics then tested panel data European over 2008-2014 period. Results show statistically significant negative impact degree integration acquisitions inputs. Combining demand, double nature - product process -, together with linkages, shows that dependence sector from performed by other ones proxy input innovations exert effect employment.