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Firms’ Innovation Activity and Numerical Flexibility

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  • Amaia Altuzarra
  • Felipe Serrano

Abstract

This study investigates the relationship between manufacturing firms' innovation activity (measured by product innovation, process innovation, and R&D activities) and their numerical flexibility (proxied by the rate of fixed-term contracts). Estimates using data from Spain's Survey on Firms' Strategies (EESE) for the years 2000–2002 reveal a non-monotonic relationship: a firm's probability of innovating and carrying out R&D increased as the rate of use of temporary and other non-core workers increased, but only up to a threshold, beyond which this probability decreased.

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 63 (2010)
Issue (Month): 2 (January)
Pages: 327-339

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Handle: RePEc:ilr:articl:v:63:y:2010:i:2:p:327-339

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Cited by:
  1. Nicole Torka & Jan Kees Looise & Stefan Zagelmeyer, 2011. "Ordinary Atypical Workers, Participation within the Firm and Innovation: A Theoretical Endeavor and Empirical Outlook," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 22(3), pages 221-239.
  2. Marco Di Cintio & Emanuele Grassi, 2013. "Uncertainty, flexible labour relations and R&D expenditure," EERI Research Paper Series EERI RP 2013/13, Economics and Econometrics Research Institute (EERI), Brussels.
  3. Stirpe, Luigi & Bonache, Jaime & Revilla, Antonio, 2014. "Differentiating the workforce: The performance effects of using contingent labor in a context of high-performance work systems," Journal of Business Research, Elsevier, vol. 67(7), pages 1334-1341.

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