Does Technological Innovation Compete or Complement Job Employment? Effect of Technological Innovation and Financial Performance

The study aimed to investigate whether software-based or engineering-based innovation from in-house, outsourced or multinational corporations is in competition or a complement to job employment. Using the Indian stock market as a testing ground, we used canonical correlation analysis and panel regression to analyse 80 sustainability-reporting firms. The study shows that technological innovation in engineering and software complements employment in the extractive and manufacturing industries. However, the study shows that technological innovation in engineering and software competes with employment in the service industries. The research also indicates that technological innovation (software-based and engineering-based) alone does not significantly affect job employment. However, an increased technological innovation in engineering combined with financial performance leads to a corresponding rise in the employment of manufacturing industries.