ABSTRACT
European Council decisions of Lisbon concern economic competitiveness and knowledge, Gothenburg ecological sustainability and Barcelona knowledge-based innovation. Their aims are to develop a sustainable socio-ecological market economy in Europe. Employment can also be augmented by a higher propensity to save: that is, a higher rate of capital accumulation. But the employment efficiency of economic growth still depends on the relation between the growth rates of labour and capital productivity. Physical resource-saving innovations have both a positive ecological and economic effect. Especially with rising resource prices, a considerable reduction of capital inputs can be expected by reducing the quantity of resources. Publicly organised innovation systems normally have a positive impact on economic growth and by this a favourable effect on wages and employment. Under low growth regimes innovation systems have a stronger distributional effect in favour of profits. Relative movements of quantities and prices have been intensively discussed in disequilibrium theory.
