Innovation, efficiency, and the quantitative and qualitative demand for human resources

The effects of three kinds of technological changes on employment are considered: (1) basic and major improvement innovations, (2) medium improvement and incremental innovations, and (3) small incremental and pseudoinnovations. The relation between innovation, investment, and employment is studied for the German Democratic Republic (GDR) are the Federal Republic of Germany (FRG). Finally, conclusions are drawn concerning the relation of education or skills to technological stages of industry development.