Globalization of the Economy, Unemployment and Innovation

Economic globalization has intensified since the 1980s and created faster channels of international interdependence and an accelerating technology race. In this new asymmetric world economy the EU is facing a dynamic and flexible US system which takes advantage of the global quest for foreign direct investment. Innovation policies in the EU - in particular in Germany - are found to be rather inadequate. There are also new theoretical challenges where a "structural macro model" and a Schumpetrian model of innovation and full employment are presented as new approaches. Besides theoretical challenges the increasing global dynamics raise new problems of international policy coordination which could lead to unsustainable economic globalization.

InhaltsangabeIntroduction.- Economic Globalization: Globalization of the Economy and Increasing International Competition.- Globalization and Rising Importance of Diffusion.- Globalization, Telecommunications and Diffusion.- Unemployment and Innovation in Europe: EU Labor Markets Facing Globalization and Intensified Technology.- The Global Economy: R&D, Structural Change and Employment Shifts.- Labor Costs, Unemployment and Innovation: Labor Cost Pressure and Unemployment.- Factors Underlying High Labor Costs.- Analytical Types of Wage and Labor Cost Pressure.- Wage Pressure, Productivity Growth and Innovation.- Bargaining Regimes and Incentives.- Firm Size, Productivity and Labor Costs.- Wage Pressure, Innovation, FDI and Unemployment.- Conclusions and Policy Implications for Europe.- Appendix.- Issues of Innovation Policy: R&D Policy and Reforms.- Innovation and Innovation Policy.- Adjusting Guidelines, Promoting Cooperation and Increasing Transparency.- Environmental Problems and Growth: Some Policy Conclusions.- Exploiting Communication Opportunities.- New Role for the EU in Education Policies.- Mobilizing Entrepreneurship in Universities.- Perspectives: Globalization and Political Innovation in a Democracy.- Globalization, the Information Society and Economic Catching-up in the World Economy.- Appendix.