Episode 126: Unlocking Adoption – How Labour Markets Shape Europe’s Tech Future with Erik Canton

In this episode, Erik van der Marel speaks with Erik Canton, Deputy Chief Economist at DG Research and Innovation and Deputy Head of Unit for Common Research and Innovation Strategy & Foresight Service at the European Commission, about the often overlooked relationship between technology adoption and labour market institutions.

Drawing on his recent paper, Employment Protection, Adjustment Costs, and Technology Adoption, Canton argues that the key policy challenge is not how innovation is created, but how effectively firms adopt and integrate new technologies. Focusing on AI, he explains how stringent employment protection legislation (EPL) can impose significant legacy and restructuring costs on large, productive incumbent firms, creating a structural barrier to technology adoption and productivity growth.

The conversation explores Europe's productivity paradox, why startups are often better positioned to embrace technological change, the strengths of Nordic flexicurity models, and how AI is reshaping labour market dynamics by shifting attention from workers' skill levels to the specific tasks they perform.

You can watch a video recording of this conversation here.

You can read a transcript of the chat here.