Kopylov K.R.Published in:
Russian Journal of Innovation Economics
– Volume 7, Number 3 (July-September 2017)

JEL classification: J29, O31, O33, P29

Keywords: economy of Central Europe, information technology, labor market, market economy, post-communist countries, robotization, transition economy, Visegrad group


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Abstract:

The article predicts the impact of innovation on labor market development in the countries of the Visegrad Group. We show the differences in the situation of production robotization between the Western countries, particularly the US and studied post-Communist countries of the Central Europe. We consider the positive side of the introduction of innovations. However, we mark that this process can have a negative effect on the labor market in the studied countries, in particular, on the growth of unemployment rate. It can be caused by job cuts caused by robatization of enterpises and by the lack of sufficient number of new jobs in manufacturing, service and sales of robots. That could potentially take place in the United States and other countries-leaders in robotics technologies. We also see the need to further study the impact of immigration of low-skilled workers in the studied countries, because the immigration may create additional problems in the labor market due to potential job cuts.

Highlights:

The article considers the impact of innovations on labor market development in the countries of the Visegrad Group. We show the differences in the situation of production robotization between the Western countries, particularly the US and studied post-Communist countries of the Central Europe.
We consider the positive side of the introduction of innovations. However, we mark that that in addition to the positive effects that stimulate the growth of the competitiveness of the economy,this process can have a negative effect on the labor market in the studied countries, in particular, on the growth of unemployment rate.
It can be caused by job cuts caused by robatization of enterprises and by the lack of sufficient number of new jobs in manufacturing, service and sales of robots. That could potentially take place in the United States and other countries-leaders in robotics technologies. We also see the need to study other new factors affecting the development of the labor market in the countries of the Visegrad Group.

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