Professional Project Research Project 2022

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Professional Project: Innovation Process and Employment Growth in Australian Manufacturing
Industries
Student’s Name
Institutional Affiliation

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Executive Summary
This research paper investigate the correlation between innovative process and employment
growth in the Australian manufacturing industry. The contribution of the literature are fourfold.
It begins with an introduction about innovation process and its related economic growth. Second,
discuss innovation and manufacturing performance. Thirdly it discuss product innovation and
employment growth and conditions for technical process to contribute to job creation. In
methodology the research use qualitative research method to collect and analyze data, provide
discussion of the findings, give a conclusion and then provide recommendations and limitation
that face the study.
Table of Contents

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Introduction.................................................................................................................... 4
Problem Statement........................................................................................................ 5
Research aim and research questions..................................................................................... 5
Literature Review............................................................................................................ 6
Introduction................................................................................................................ 6
Product innovation and employment growth........................................................................7
Innovation and manufacturing economic performance............................................................8
Process innovation and employment growth.........................................................................9
Conditions for technical process to contribute to job creation..................................................10
Methodology................................................................................................................ 11
Introduction.............................................................................................................. 11
Data Collection.......................................................................................................... 12
Findings and analysis................................................................................................... 12
Discussion of findings.................................................................................................. 14
Conclusion................................................................................................................... 14
Recommendations.......................................................................................................... 15
Limitations................................................................................................................... 15
References................................................................................................................... 16
Innovation Process and Employment Growth in Australian Manufacturing Industries

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Introduction
Innovation in the manufacturing sector is regarded as a critical strategy to ensuring
productivity growth. Innovation at its simplest is all about new ideas put into practice, which
drives long lasting productivity growth ad underpins human advancement. Recent research has
shown that nearly 50% of businesses in Australia are proactively innovative, with the innovation
broadly distributed across all industries (Hajkowicz et al., 2016). Indeed, Australian companies
tend to be specialized in transforming novelty introduced by other domestic corporations.
However, innovations new to market are not nearly as common. According to Janger, Schubert,
Andries, Rammer, and Hoskens (2017) several collaborations metrics for innovation, Australia is
ranked in the bottom half of the Organization for Economic Co-operation and Development
(OECD). Even though Australia has been experiencing a decline in some of its businesses its
entrepreneurial attitude remain competitive. International reports indicate that sales growth and
employment is concentrated in relatively small portion of high-growth firms (HGFs).
Transformation in technology drives lasting productivity, economic growth as well as improving
the living standards of people. On the same note, the emergence as well as diffusion of novel
concepts production techniques and products throughout the economy involves an “ingenuity
destruction” process. Indeed, novel technologies destroy jobs in certain sectors particularly
amongst the low-skilled whereas creating jobs that in most cases in diverse industries, but they
calls for high skills.
Generally, the process of innovation has resulted in net job creation since new industries
are substituting the old ones and employees adapt the skills to the increasing and changing
demand. Presently, the fast change in technology coupled with the intense restructuring
underway in OECD markets which has resulted in some associate technology with social distress

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as well as unemployment. Nevertheless, technology per se is not culprit, the economy-wide
employment effect has a possibility to become positive given that the mechanisms that will be
used to translate technology into jobs does not get impaired by scarcities in terms of innovation
systems and training as well as rigidity in labor and products financial markets. In order to
realize the full potential of technological transformation towards enhancing economy-wide
growth, productivity as well as job creation, the Australian government should make technology
and innovation diffusion policies an essential part of the entire economic policy.
Problem Statement
With the advancement in innovation in the manufacturing industry it has led to new
products linked to information technology such as 3D printing machines, self-driving automated
vehicles and robots. All these inventions have changes the production process, with most of them
increasing fear of imminent pervasive technological unemployment. Furthermore, it is not only
employment in the manufacturing industry that seem to be at risk but also occupations in
services such as those that need cognitive skills (Mitra, & Jha, 2016). As a result, multinational
organizations such as OECD, and European Commission are currently rising concern regarding
the issue to avoid jobless growth. Particularly, at OECD level the matter is relevant. Therefore,
policy-makers are supposed to update evidence about the correlation between innovation and
employment by tailoring policies which will help to support labor-friendly innovation.
Research aim and research questions
Despite the future being uncertain, the core issues when it comes to analyzing the effect
of new as well as emerging technologies on jobs in the future, there is need to understand the
correlation between innovations, new technologies and jobs. The aim of this research paper is to
find out the mechanisms and forces which destroy jobs and those that create jobs and the

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connection and communication between them. The research question that will be used to
undertake this research with the intent to achieving the stated above research aim.
Research questions
1. To find out which type of jobs that are at risk of being replaced by innovation systems in
the manufacturing industry?
2. To investigate which mechanism and forces destroy jobs and opportunities in the
manufacturing industry in Australia?
Hypothesis
H0: Low-skills jobs are at high risk of being replaced by innovation systems in the
manufacturing industry in Australia.
H1: Low-skills jobs are not at high risk of being replaced by innovation systems in the
manufacturing industry in Australia.
H0: The use of robotics mechanism in the manufacturing industries in Australia is destroying
jobs.
H1: The use of robotics mechanism in the manufacturing industries in Australia is not destroying
job opportunities.
Literature Review
Introduction
Innovation is a crucial tool to delivering substantive benefits to the well-being of
societies, hence it is vital in resolving some of its most pressing challenges (Li, & Rama, 2015).
Indeed, the benefits associated with innovation often goes beyond economic paybacks to touch to