Flexible labor and innovation performance: Evidence from longitudinal firm-level data
AbstractFirms with high shares of workers on fixed-term contracts have significantly higher sales of imitative new products but perform significantly worse on sales of innovative new products (“first on the market”). High functional flexibility in “insider-outsider” labor markets enhances a firm’s new product sales, as do training efforts and highly educated personnel. We find weak evidence that larger and older firms have higher new product sales than do younger and smaller firms. Our findings should be food for thought to economists making unqualified pleas for the deregulation of labor markets.
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Bibliographic InfoPaper provided by Delft University of Technology, Faculty of Technology, Policy and Management in its series Economics and Management of Innovation Working Papers with number 2010-1.
Date of creation: 12 Apr 2010
Date of revision:
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Innovation performance; new product sales; numerical flexibility; functional flexibility; SMEs; OSA longitudinal data;
Other versions of this item:
- Haibo Zhou & Ronald Dekker & Alfred Kleinknecht, 2011. "Flexible labor and innovation performance: evidence from longitudinal firm-level data," Industrial and Corporate Change, Oxford University Press, vol. 20(3), pages 941-968, June.
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-03 (All new papers)
- NEP-ENT-2010-07-03 (Entrepreneurship)
- NEP-INO-2010-07-03 (Innovation)
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