Employment growth and innovation in the economy Poland

Abstract

RESEARCH OBJECTIVEThe paper aims to investigate whether product and technological innovations in the manufacturing sector determined its share in total employment in 1995-2018 and, at the same time, how they shaped the processes of change in the real structure of the Polish economy. THE RESEARCH PROBLEM AND METHODS: It was hypothesised that the low level of innovation in the manufacturing sector is a key determinant of the decline in its share in total employment, and the dichotomy of the deindustrialisation process in the Polish economy over the period 1995-2018. THE PROCESS OF ARGUMENTATION: In order to realise the objective, and to verify the hypothesis posed, a statistical analysis of the process of changes in the structure of the Polish economy for the years 1995-2018 in the production category as well as in the employment category was carried out. RESEARCH RESULTS: The analysis of changes in the structure of Poland's economy showed that the strongest growth in the total economy was in the production demand of the industrial sector. The increase in GDP per capita was most determined by the volume of manufacturing production (industrialisation process). In contrast, there was a large decline in employment in industry (deindustrialisation process) and no increase in employment in the total economy. CONCLUSIONS, INNOVATIONS, AND RECOMMENDATIONS:The research has shown the existence of a dualistic deindustrialisation process, the cause of which is the lack of innovation in the industrial sector. This results in jobless economic growth creating a very high level of unemployment, as well as an excess of labour force in agriculture. Hence the need for research into the impact and level of innovation in the structure of the industrial sector itself on its competitiveness. Then, on the basis of these, an appropriate state economic policy aimed at reindustrialisation based on product and technological innovation.