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Bargaining Structures and Delay in Innovation

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  • Ulph, Alistair
  • Ulph, David

Abstract

It is sometimes argued that fears about the employment consequences of introducing new technology may lead unions to wish to delay innovations, and this may reduce incentives for a firm to carry out R&D. The authors explore these issues in a model of two countries that compete over both market share and R&D, and they restrict attention to cases where unions would wish to delay innovation. They show that allowing unions to bargain over the timing of innovation need not reduce the possibility of a firm successfully competing for R&D. However, simulations suggest that, for a particular model, allowing unions to delay innovation does not help a firm compete over R&D. Copyright 1988 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Ulph, Alistair & Ulph, David, 1988. "Bargaining Structures and Delay in Innovation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(4), pages 475-491.
  • Handle: RePEc:bla:scandj:v:90:y:1988:i:4:p:475-91
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    Cited by:

    1. Hristos Doucouliagos & Patrice Laroche, 2013. "Unions and Innovation: New Insights From the Cross-Country Evidence," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(2), pages 467-491, April.
    2. Asproudis, Elias & Filippiadis, Eleftherios & Tian, Mo, 2021. "Climate solidarity, green trade unions and timing of technological choice," MPRA Paper 106329, University Library of Munich, Germany.
    3. S. Dobbelaere, 2003. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/171, Ghent University, Faculty of Economics and Business Administration.
    4. Asproudis, Elias & Filippiadis, Eleftherios & Tian, Mo, 2022. "Timing of environmental technological choice and trade unions' climate solidarity," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    5. Zwick, Thomas, 2000. "Empirical determinants of employee resistance against innovations," ZEW Discussion Papers 00-47, ZEW - Leibniz Centre for European Economic Research.
    6. Belloc, Filippo, 2010. "Corporate governance and innovation: an organizational perspective," MPRA Paper 21495, University Library of Munich, Germany.
    7. Adriana Cassoni, 1997. "A brief survey on the role of trade unions in labour market," Documentos de Trabajo (working papers) 0697, Department of Economics - dECON.

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