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Union Effects on Product and Technological Innovation

Bryson, A; Dale-Olsen, H; (2021) Union Effects on Product and Technological Innovation. Research in Labor Economics: Workplace Productivity and Management Practices , 49 pp. 41-65. 10.1108/S0147-912120210000049002. Green open access

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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 labour-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.

Type: Article
Title: Union Effects on Product and Technological Innovation
Open access status: An open access version is available from UCL Discovery
DOI: 10.1108/S0147-912120210000049002
Publisher version: https://doi.org/10.1108/S0147-912120210000049002
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: trade unions, product innovation, process innovation, collective bargaining
UCL classification: UCL
UCL > Provost and Vice Provost Offices > School of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute
URI: https://discovery.ucl.ac.uk/id/eprint/10125713
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