A study examined the role of technology in the European Union's (EU's) economy and its impacts on employment. Starting point was Technology and Employment Maps of the FUTURES project that identified main emerging technological developments (TDs) and their implications for employment. Technologies' potential impact on productivity growth and consumption patterns was estimated using theoretical and empirical evidence. Simulation models used estimates as input to quantify TDs' impact in terms of economic growth and employment under alternative technology policy scenarios. Findings indicated technology and innovation play a positive role in economic growth and employment; emerging technologies accelerate economic growth and lead to job creation; Europe needs to invest in education and training in those fields of technology expected to advance most rapidly---information and communication technologies (ICT), biotechnology, and nanotechnology; a small initial increase in public funding leads to increases in private research and development (R&D) outlays and improvements in labor productivity; impacts of increases in innovation expenditures varies across EU sectors and regions; in terms of job creation and economic growth, payoff from R&D in high technology sectors and established competitive sectors produces the best results; and technological progress is EU's main option to maintain its competitiveness on the international level. (Appendixes include 151 references and growth and demand projections.) (YLB)