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Productivity effects of innovation, stress and social relations

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  • Cowan, Robin
  • Sanditov, Bulat
  • Weehuizen, Rifka

Abstract

Abstract Innovation is a source of increasing productivity, but also of stress. Psychological research shows that individual productivity increases and then decreases as stress levels increase. Agents' stress levels are determined by their own coping ability and by positive and negative spillovers to their social contacts. We model stress and inter-agent dynamics, identifying the relationships between innovation, stress and productivity. We characterize conditions under which multiple equilibria in stress levels and growth rates exist; and under which the dynamics exhibit hysteresis. High rates of innovation can result in high stress equilibrium and have a negative effect on economic growth.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 79 (2011)
Issue (Month): 3 (August)
Pages: 165-182

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Handle: RePEc:eee:jeborg:v:79:y:2011:i:3:p:165-182

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Web page: http://www.elsevier.com/locate/jebo

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Keywords: Innovation Stress Social relationships;

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References

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  1. Akçomak, I. Semih & ter Weel, Bas, 2009. "Social capital, innovation and growth: Evidence from Europe," European Economic Review, Elsevier, vol. 53(5), pages 544-567, July.
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  7. Kathryn Shaw, 2004. "The Human Resources Revolution: Is It a Productivity Driver?," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 69-114 National Bureau of Economic Research, Inc.
  8. Bernard Sinclair-Desgagné & Antoine Soubeyran, 2000. "A Theory of Routines as Mindsavers," CIRANO Working Papers 2000s-52, CIRANO.
  9. Theresa M. Glomb & John D. Kammeyer-Mueller & Maria Rotundo, . "Emotional Labor Demands and Compensating Wage Differentials," Working Papers 0802, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
  10. Lam, Alice, 2004. "Organizational Innovation," MPRA Paper 11539, University Library of Munich, Germany.
  11. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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Cited by:
  1. Cowan, Robin & Jonard, Nicolas & Weehuizen, Rifka, 2012. "The co-evolution of organizational performance and emotional contagion," UNU-MERIT Working Paper Series 012, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.

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