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Union Effects on Product and Technological Innovation

In: Workplace Productivity and Management Practices

Author

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  • Alex Bryson
  • Harald Dale-Olsen

Abstract

We present theoretical and empirical evidence challenging early studies that found unions were detrimental to workplace innovation. Under our theoretical model, unions prefer product innovation to labor-saving technological process innovation, thus making union wage bargaining regimes more conducive to product innovation than competitive pay setting. We test the theory with population-representative workplace data for Britain and Norway. We find strong support for the notion that local bargaining leads to product innovation, either alone or together with technological innovation.

Suggested Citation

  • Alex Bryson & Harald Dale-Olsen, 2021. "Union Effects on Product and Technological Innovation," Research in Labor Economics, in: Workplace Productivity and Management Practices, volume 49, pages 41-65, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-912120210000049002
    DOI: 10.1108/S0147-912120210000049002
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    Citations

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    Cited by:

    1. Harald Dale-Olsen, 2021. "Do unions contribute to creative destruction?," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-23, December.
    2. Giovanni Sulis & Gabriele Cardullo, 2023. "Unions and investment in intangible capital," IZA World of Labor, Institute of Labor Economics (IZA), pages 201-201, May.

    More about this item

    Keywords

    Product innovation; process innovation; trade unions; collective bargaining; employer organization; comparative; J28; J51; J81; L23;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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