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This study aims to obtain empirical evidence of the existence of a nonlinear effect of imported technology on industrial employment, which has been largely overlooked in the literature. To achieve this objective, this article employed panel data models using non-linear panel threshold regression (PTR) approaches for a sample of developed and developing countries over the period of technological advancement from 2000 to 2019. Several conclusions were drawn from this study. Firstly, the use of a regime-switching test based on the Hansen approach confirmed the existence of a nonlinear relationship between technology imports and industrial employment. Secondly, the analysis demonstrated that the threshold and its impact vary depending on the level of economic development. In addition, the results showed a weak positive impact for both developed and developing countries. However, this positive effect was more pronounced in developed countries, mainly due to the relative efficiency of their compensatory mechanisms. This efficiency is dependent on the institutional and economic factors of the countries. Therefore, special attention should be given to these factors when formulating economic policies and innovation strategies.
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