Impact of the Recession on Innovation and Technology Growth

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Impact of the Recession on Innovation and Technology Growth

1. Introduction

Entrepreneurs cause Entrepreneurship. Entrepreneurship is a function of the entrepreneur E + f(e).

Entrepreneurship is the interaction of skills related to inner control, planning and goal setting, risk taking, innovation, reality perception, use of feedback, decision making, human relations and independence.

Creating a new enterprise model involves considerable change in virtually everything to do with people’s working lives starting with the future model of Entrepreneurship. A model for entrepreneurship that explains in industries employment change by combining technology with innovation demand, it is proposed in this article.

This article explores the way economic cycles influence the relationship between innovation and human relationemployment in manufacturing industries.

The article investigates whether the ups and downs of cycles alter the possibility of exploiting innovation, technological opportunities which can affect patterns of job creation. Human resources the employment dynamics have always followed cyclical patterns expansions of production; bring new jobs when recessions lead to job losses (Mastrostefano and Pianta, 2009).

A large macroeconomic literature, has investigated employment dynamics in their relationship to the cyclical patterns of economic growth. Labour economics perspectives; have focused on the role of knowledge wages in affecting employment and the economical periods of high cyclical unemployment (Pisarides, 2009, Pianta, M. 2005). Distinctions have been made between the determinants of employment in business cycles and in long-term growth, capital-labour complementarities, and the evolution of labour supply and, more recently, the diversity of labour skills. ( Lucchese, M and Pianta, M., 2012) .

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In order to summarize the diversity of industry patterns in innovation and employment over the cycle, it is necessary to take in consideration the well-known Pavitt taxonomy. It provides a relevant conceptualization of the differences in the process of technological change by classifying firms and industries on the basis of their dominant sources of innovation, the forms of appropriation of technology and market structure. In his taxonomy, Pavitt (1984) identifies four groups that describe the level of technological opportunities of each industry:

(a) Science-Based industries include sectors based on advancements in science;

(b) Specialized supplier industries create specific products for users-industries, and these typically include machinery and equipment, with an active role for human capital;

(c) Scale intensive industries include sectors characterized by large economies of scale, high capital intensity and strong relevance of organizational improvements such as motor vehicles;

(d) Supplier dominated industries include traditional sectors including food, textiles, clothing.

Along the article, the author generally assumed to operate and established the relationship between labour and how innovation can influence the employment as a final solution for economical development.

2. Methodology

The sample was draw for people involved in business activity in Baia Mare city. A total of 250 respondents were contacted. Respondents were surveyed using a forth part structured questionnaire.

Part 1-measured variables using single items such as educational background, type of business activity, type of organization.

Part 2– measured the factors, which were classified into entrepreneurial core, work core, individual and social core relevant for leadership style of the respondent person.

Part 3- measures the profile of leadership, the attitude in different situation of the manager, and identify the type of leader.

Part 4- measure the perception for new development and new orientation into organization, identify some individual suggestions.

The surveyors have been questioned about their business and the opportunity to implemented change management and introduce innovation in their organization. The internal consistency of the measure and the results indicate that the items in measuring the organizations activity dimensions are reliable. Also the survey make a radiography upon the economic activity of the city Baia Mare and give an answer to economical and employment problems.

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3. Results

Traditional industries such as supplier-dominated sectors are characterized by a long-term decline in employment associated with the broader patterns of structural change and demand dynamics. The number of individual business organizations reflects the engine of economy structure especially on small business in a miner region like Baia Mare city, where ‘’old factories’’ are just