Innovation and Employment in Economic Cycle Management

The article explores the way economic cycles influence the relationship between innovation and employment in manufacturing industries. In order to summarize the diversity of industry patterns in innovation and employment over the cycle, it is necessary to take in consideration the well-known Pavitt taxonomy. The study is based on 250 persons engaging in the manufacturing trading and services sectors in Small and Medium Industries in Baia Mare, Romania. The article examines the factors that can influence motivational factors for manager to implement a new orientation into organization. Motivation factors are classified into economic, work, individual, entrepreneurial and social core. Description analyses revealed some aspects between economical cycle and motivation factors for employers. Employment dynamics have always followed cyclical shape expansions of production which bring new jobs, recessions lead to job losses. A comparison of these factors it was done between business persons from different economical sectors from Maramures Region. A discussion on survey about the business profile and the relation between innovation and manufacture industries is also providing.