Brexit to put tech in reverse
A combination of Brexit and tech innovation will increase the speed and process of disruption to the UK labour market, warns the LSE. It adds that any positives of technological change such as increased productivity and long-term economic growth will be muted in the immediate aftermath of Brexit.
Brexit-induced economic contraction is likely to stretch the labour market and exert downward pressure on wages, as well as reducing incentives to adopt new production technologies, argue academics Christopher Pissarides, Anna Thomas and Josh De Lyon.
They also say that “the absence of trade agreements is likely to add barriers to the exchange ideas, information and to conducting internationally collaborative work beneficial to technological innovation on a global playing field.”
And, “recent progress the UK has made with regard to technological innovation, and leadership in AI-related technologies in particular, is likely to reverse.”