This paper is a contribution to the analysis of the relationship between technical change, economic development and employment. It forms part of a larger study of technical change and employment in Germany, encompassing a macroeconomic model of income circulation, a disaggregated econometric model of the sectoral differences of the effects of new technologies, and an input-output analysis of the direct and indirect effects of technological change. The present paper concentrates on examining the relationships between users and producers, the intersectoral technology flow matrix, and its links with the disaggregated demand model for analysing the influence of different technology variables on labour demand.