The direct and indirect impacts of new technologies on employment: The example of the german biotechnology sector

This paper explores employment effects of new technologies using the example of modern biotechnology and empirical data for the German biotech industry. We differentiate between direct employment effects in small and medium-sized biotechnology firms and indirect effects in established industries. Our findings support theoretical considerations arguing that high technologies per se do not generate substantial new employment. Rather their impact on employment is more of an indirect nature leading to employment stabilisation and growth. We recommend putting more public and political attention to the indirect imployment effects of biotechnology since they are quantitatively and qualitatively much more important than their direct counterparts.