Innovation and technological unemployment in Ricardo’s theory of economic growth

Purpose. To analyze the relationship between induced innovations, economic growth and technological unemployment in the theory of D. Ricardo, as well as to adapt the mathematical model of L. Pasinetti to test the economic effects of replacing human labor with machines. Methodology. The research methodology is based on a combination of system analysis and economic and mathematical modeling. Specific economic research methods are used: frontier analysis (to model the dynamics of the evolution of capital, employment and other indicators of economic conditions under the influence of changes in other factors); equilibrium analysis (to find the states of stationary equilibrium of the economic system); graphical analysis (for data processing and visual demonstration of the research results). Findings. The main components of D. Ricardo’s economic growth model are analyzed. Using the adapted mathematical model of L. Pasinetti, the pessimistic and optimistic scenarios of economic growth with regard to technological progress are tested. It is proved that D. Ricardo’s system is holistic, logically complete and subject to mathematical formalization. It is demonstrated that under certain conditions, the Ricardian model allows for the simultaneous introduction of innovations and the absence of a reduction in gross product in the short term. Originality. The methodological approaches to studying the relationship between innovation and technological progress, on the one hand, and employment and technological unemployment, on the other hand, have been further developed. An integral part of this relationship is economic growth, the dynamics of which determines the nature of the impact of innovations on the welfare of the population. The analysis of the Ricardian model has shown that with the gradual introduction of machines and their sufficiently high efficiency, the new steady state equilibrium is characterized by higher values of accumulated capital, employment and gross product than the previous one. Practical value. The article proposes a modified mathematical model by L. Pasinetti, which forms a Ricardian methodological framework for analyzing the socio-economic effects of induced innovations. The obtained results can be adapted and applied to analyze modern aspects of technological unemployment, in particular, for further study of the phenomenon of artificial intelligence and digitalization of the economy.