This paper provides evidence on the relation between investment in digital and automation tech- nologies and employment in different manufacturing industries in Europe and the extent to which this rela- tion varies over time across technologies, industries, and regions. We find that in the short run the techno- logical penetration of robots is associated with higher employment in low-tech regions, while service-inten- sive regions and cities experience decreased employ- ment. Our heterogenous results suggest the need for different but coordinated policies at the European, national, and sub-national levels.
