Istanbul Gelisim University - “R&D activities and expenditures have no effect on employment”

“R&D activities and expenditures have no effect on employment”

Having signed a study on the relationship between R&D activities and employment and the contribution of R&D studies to employment, Asst. Prof. Canan Tiftik said, “Contrary to expectations, it is seen that technological developments and R&D activities do not increase general employment, but increase unemployment. It is seen that the employment-reducing effects of technology are higher than the employment-increasing effects.”

Making a statement about her article titled "The Effect of Technology-Based Research and Development (R&D) Activities on General Employment: Systematic Compilation Study", Asst. Prof. Canan Tiftik said, “According to the research results; R&D activities and expenditures, which are included in the economic activities of the countries, have no effect on employment.”

“TECHNOLOGY BRINGS ALONG UNEMPLOYMENT”

In her statement on the subject Dr. Tiftik said, “Within the scope of Research and Development (R&D) and innovation studies; Robotic technology, digitalization and artificial intelligence applications enter all areas of life and economy and affect people in some way. These developments also increase the likelihood that employees and job seekers will not be able to find a job. Technological developments that save labour and employment are criticized because the competition between labour and mechanization leads to an advantage in the name of mechanization and brings along a unique technology-induced unemployment problem.”

“HIGHER SHARE OF THE PUBLIC SECTOR”

Comparing the European Union (EU) average and the R&D expenditures in Turkey in 2015, Dr. Tiftik said, “It is seen that the EU spends approximately 2 percent on R&D, while Turkey spends approximately 0.9% on R&D. The ratio of Turkey-based R&D expenditures cannot reach the ratio of developed countries and even the one percent accepted as the threshold value. While research and development studies in EU countries are mostly carried out by private enterprises, the share of the public sector is higher in Greece, Turkey and Poland and similar countries.

MACHINES REPLACE PEOPLE, UNEMPLOYMENT INCREASES

Stating that the general judgment that technology provides economic growth, increases labor force participation and improves welfare is not fully supported, Asst. Prof. Canan Tiftik said, “Thanks to the use of technological opportunities and innovations, the number of products produced is increasing. Despite the fact that the products resulting from production are efficient in terms of quantity and quality, technology reduces the workforce in production processes and unemployment increases as people are replaced by machinery and automation.”
"The increase in employment or the increase in unemployment due to the increase and use of technological R&D activities may vary according to the sector or line of business," said Dr. Tiftik and ended her words as follows:

“As a sector with a high technology density, research results examining the relationship between the increase in the use of technological banking channels and employment predict that there will be a decrease in the number of employed employees. Technology also enables women to spend less time on housework and makes their work easier. Thus, technology increases women's participation in the workforce and employment opportunities. This finding supports the argument that labor markets are becoming more flexible and transparent for disadvantaged groups.”