Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions

Prompted by rising income inequality (in short, inequality) in advanced economies, a rapidly growing number of studies across various fields and disciplines of social science have, since the 1990s, sought to find out how innovation (as the main engine of economic progress) affects the distribution o...

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Main Author: Thanos Fragkandreas
Format: Article
Language:English
Published: Pluto Journals 2022-05-01
Series:Prometheus
Online Access:https://www.scienceopen.com/hosted-document?doi=10.13169/prometheus.38.2.0147
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author Thanos Fragkandreas
author_facet Thanos Fragkandreas
author_sort Thanos Fragkandreas
collection DOAJ
description Prompted by rising income inequality (in short, inequality) in advanced economies, a rapidly growing number of studies across various fields and disciplines of social science have, since the 1990s, sought to find out how innovation (as the main engine of economic progress) affects the distribution of income in modern-day capitalist societies. Using the systematic literature review method, this paper provides the first critical review of 166 studies on innovation and inequality published in 114 journals in the last three decades (1990–2019). It is shown that, while the great majority of studies under review concur that innovation induces inequality, this finding is subject to the disciplinary origins of research (e.g., development studies, economics, geography, innovation studies, etc.) and the country under investigation. Furthermore, guided by an original causally holistic analytical framework, the analysis demonstrates that the relationship between innovation and inequality is significantly more causally complex than the most popular theoretical perspective (i.e., skill-biased technological change account) has let us believe; in particular, it is subject to five causal scenarios and a range of explanatory factors (i.e., skill premiums, technological unemployment, international trade, declining union membership, spatial aspects, changing employment conditions, policy, horizontal inequalities, sectoral composition and types of innovation). The paper ends by discussing findings, policy implications and knowledge gaps, one of which concerns the following under-researched question: how, and under what conditions do publicly funded innovation policies reduce (or increase) inequality?
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spelling doaj-art-e06b477eee9042febdbea25a8de6fed52024-11-28T17:00:20ZengPluto JournalsPrometheus0810-90281470-10302022-05-0138214719310.13169/prometheus.38.2.0147Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestionsThanos FragkandreasPrompted by rising income inequality (in short, inequality) in advanced economies, a rapidly growing number of studies across various fields and disciplines of social science have, since the 1990s, sought to find out how innovation (as the main engine of economic progress) affects the distribution of income in modern-day capitalist societies. Using the systematic literature review method, this paper provides the first critical review of 166 studies on innovation and inequality published in 114 journals in the last three decades (1990–2019). It is shown that, while the great majority of studies under review concur that innovation induces inequality, this finding is subject to the disciplinary origins of research (e.g., development studies, economics, geography, innovation studies, etc.) and the country under investigation. Furthermore, guided by an original causally holistic analytical framework, the analysis demonstrates that the relationship between innovation and inequality is significantly more causally complex than the most popular theoretical perspective (i.e., skill-biased technological change account) has let us believe; in particular, it is subject to five causal scenarios and a range of explanatory factors (i.e., skill premiums, technological unemployment, international trade, declining union membership, spatial aspects, changing employment conditions, policy, horizontal inequalities, sectoral composition and types of innovation). The paper ends by discussing findings, policy implications and knowledge gaps, one of which concerns the following under-researched question: how, and under what conditions do publicly funded innovation policies reduce (or increase) inequality?https://www.scienceopen.com/hosted-document?doi=10.13169/prometheus.38.2.0147
spellingShingle Thanos Fragkandreas
Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions
Prometheus
title Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions
title_full Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions
title_fullStr Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions
title_full_unstemmed Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions
title_short Three decades of research on innovation and inequality: Causal scenarios, explanatory factors and suggestions
title_sort three decades of research on innovation and inequality causal scenarios explanatory factors and suggestions
url https://www.scienceopen.com/hosted-document?doi=10.13169/prometheus.38.2.0147
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