Theoretical aspects of evaluation of technological innovation impact on labour market parameters

ISSN 2538-6778 (internetinis)The most detailed and the most popular definition of innovation is described by OECD: „the implementation of a new or significantly improved product (good or service) or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations” (OECD, 2013). J. A. Schumpeter is a founder of this term. He defined a creative destruction term to show that technological progress gives an opportunity to economic agents to become winners but, at the same time, this process causes a rise of losers. Hence, innovation is the key driving force of economic competitiveness. Technological innovation impact on (un)employment is very controversial. According to the theoretical results, technological unemployment occurs as a direct effect of innovation irrespective of it’s nature. But, according to the classical “compensation theory,” harmful effects of technological change can be explained by the market mechanisms that are able to counterbalance the direct impact of process innovation and the job creating effects of product innovation (Vivarelli, 2011). In V. Upadhyay (2015) opinion, technological unemployment is impossible – it creates more jobs than destroys. The qualitative effect of technological change on workers differs between different categories: innovations are skill biased and it causes replacing of tasks traditionally carried out by unskilled workers with new jobs for qualified workers (Vivarelli, 2011) – new technologies require suitable high skills. At the same time, qualified workers have a higher possibility to get higher salaries than labour force with low skills. The main reason for that – a higher demand for qualified workersEkonomikos ir vadybos fakultetasVytauto Didžiojo universiteta