ABSTRACT
This chapter shows how innovation can affect the labour market and employment relations in the digital economy. It provides an analysis of the various innovation-related factors that determine these often multi-dimensional relationships. The first part of the chapter, based on a literature review, presents the essence of innovation. Among its conclusion is that in recent years enterprises have changed how they approach, create and implement innovation. The importance of innovation for the labour market and employment relations in the digital economy is also discussed. One conclusion here is that the links between the digital economy, innovation and the labour market are highly complex. Innovation not only destroys but also creates employment in the economy, affects the state and structure of employment and also influences the nature of employment relations and contributes to the emergence of new forms of employment.
