Do unions affect innovation?
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Unions can have a significant impact on innovation within firms. Research indicates that passing a union election can lead to a decline in both the quantity and quality of patents produced by firms, along with reduced R&D expenditures and productivity of inventors . The effects of unions on innovation can vary across regions, with North American studies consistently showing negative impacts on R&D, while European studies, particularly in the UK, do not always uncover such negative effects . The presence of unions may create a "hold up" issue where firms face challenges in maintaining their R&D investments due to demands for higher rewards, potentially hindering innovation efforts. These findings highlight the complex relationship between unions and innovation, with implications for policymakers aiming to foster a conducive environment for innovation.
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| Papers (5) | Insight |
|---|---|
Open access•Posted Content 117 Citations | Yes, unions may impact innovation. North American studies show unions have a strong negative effect on R&D, while European studies generally do not find negative effects on R&D. |
29 Oct 2003 16 Citations | Yes, unions may impact innovation. Studies show mixed results: North American research suggests negative effects on R&D, while European studies generally do not find negative impacts on R&D. |
| Yes, unions negatively impact innovation, leading to a decline in patent quantity and quality, reduced R&D spending, lower inventor productivity, and innovative inventor departures, prompting firms to relocate innovation activities. | |
| Yes, unions negatively impact innovation, leading to an 8.7% decline in patent quantity and a 12.5% decline in patent quality three years after union elections. | |
Open access•Posted Content 85 Citations | Yes, unions may impact innovation. North American studies show unions have a strong negative effect on R&D, while European studies, mainly in the UK, do not consistently find this impact. |
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