Any innovation that conquers an existing market or creates a new market secures existing ones and creates new jobs. This does not just apply to products; This also applies to new technologies in processes. Any rationalization in the manufacture of products or services leads to price reductions in the competition and thus to competitive advantages as well as new demand. This creates new jobs – but often elsewhere.
Creating or occupying work places?
Of course, new technologies are usually labour-saving and can therefore make jobs superfluous. And there are indications that we are facing further rationalization spurts with new technologies. Particularly in the service sector, such as banks and insurance companies, the labour-saving effects of information technology seem to be increasingly used after a longer introductory phase.
But it is also certain that the renunciation of their use would reduce their competitiveness and thus result in incomparably higher job losses. Opportunities for new employment would be blocked. The global competition does not leave us a choice. However, modernization offers the most competitive companies the opportunity to build new fields and services.
Let’s talk about the money
In part, the use of new technologies is not only labour-saving but also capital-saving. This means that every new product generation will be cheaper. Especially in information technology this seems to be almost a law. This is one of the reasons why the production of information technology equipment is now returning to Germany. In view of the rapid decline in the price of these goods, it is in some cases cheaper to produce them close to the sales market than to accept the loss in value during longer transport, for example from Southeast Asia. Although the example is not typical, it does show that we certainly have opportunities to bring back lost production to low-wage countries – if the conditions of the site are right.
Especially in areas where the labour costs of manufacturing are comparatively low, the outflow of production abroad does not have to be a one-way street. The higher the quality of a product and the greater its innovation advantage, the better it can secure domestic jobs and create new ones.
Be better than competition
If you thought that nowadays competition is increasing only in online gaming, think again. Casino industry might be blooming because of the technology and it is easier than ever to find free bet no deposit on most of the gambling sites, however, today’s cross-border competition also increasingly determines the companies’ research and development locations. Global investors seek access to the world’s leading regions in their businesses. They go to where special knowledge and experience in production meet with cutting-edge research. These economically technical, scientific and other relevant factors generate regional centers of excellence at a favourable meeting. Increasingly, companies are pooling strategic research, production and marketing activities in centres of excellence that offer great opportunities for value creation and employment growth.
Especially in sectors that are subject to a rapid change of product generations and fierce technology competition, companies orient themselves where there are good opportunities to participate in dynamic research and market processes. New fields of employment that are currently being established are therefore far more affected than those in which German industry has so far had its core activities.