Abstract
Fredrik Sjöholm and Nannan Lundin (this issue) have found that China's science and technology (S&T) activities had no effect on employment growth. I disagree with their conclusion and attribute it to the neglect of important factors like the S&T upgrading by small firms, the spillover effects from S&T activities, differences across industries, and differences in the stage of economic development. I used macroeconomic and cross-regional data in China to estimate the effect of technology development on job creation and found that technology innovation did have a positive impact on employment in the eastern region of China. This suggests that a positive relationship between technological improvement and employment creation is reliably seen only after the economy has reached a middle-level of economic development.