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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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:
Contact details of provider:
Web page: http://www.tbm.tudelft.nl
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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 301-15, May.
- Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 243-263, March.
- Alison L. Booth & Marco Francesconi & Jeff Frank, 2002.
"Temporary Jobs: Stepping Stones or Dead Ends?,"
LABORatorio R. Revelli Working Papers Series
8, LABORatorio R. Revelli, Centre for Employment Studies.
- Akkermans, Dirk & Castaldi, Carolina & Los, Bart, 2007. "Do â€˜Liberal Market Economiesâ€™ Really Innovate More Radically than â€˜Coordinated Market Economiesâ€™? Hall & Soskice Reconsidered," GGDC Research Memorandum GD-91, Groningen Growth and Development Centre, University of Groningen.
- Giuseppe Nicoletti & Stefano Scarpetta, 2003.
"Regulation, productivity and growth: OECD evidence,"
CEPR & CES & MSH, vol. 18(36), pages 9-72, 04.
- Nicoletti, Giuseppe & Scarpetta, Stefano, 2003. "Regulation, productivity, and growth : OECD evidence," Policy Research Working Paper Series 2944, The World Bank.
- Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, Productivity and Growth: OECD Evidence," OECD Economics Department Working Papers 347, OECD Publishing.
- Harry J. Holzer, 1987. "Hiring Procedures in the Firm: Their Economic Determinants and Outcomes," NBER Working Papers 2185, National Bureau of Economic Research, Inc.
- Malcomson, J.M., 1997.
"Contracts, hold-up and labor markets,"
Discussion Paper Series In Economics And Econometrics
9703, Economics Division, School of Social Sciences, University of Southampton.
- Hall, Peter A. & Soskice, David (ed.), 2001. "Varieties of Capitalism: The Institutional Foundations of Comparative Advantage," OUP Catalogue, Oxford University Press, number 9780199247752.
- Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
- Lewis M. Segal & Daniel G. Sullivan, 1995. "The temporary labor force," Economic Perspectives, Federal Reserve Bank of Chicago, issue Mar, pages 2-19.
- Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
- Nicolas Piluso & Gabriel Colletis, 2012. "Shareholder value and equilibrium rate of unemployment," Economics Bulletin, AccessEcon, vol. 32(4), pages 3233-3242.
- Grassi, Emanuele & Di Cintio, Marco, 2012.
"Uncertainty, flexible labour relations and R&D expenditure,"
37646, University Library of Munich, Germany.
- 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.
- Spyros Arvanitis & Tobias Stucki & Florian Seliger, 2013. "The Relative Importance of Human Resource Management Practices for a Firm’s Innovation Performance," KOF Working papers 13-341, KOF Swiss Economic Institute, ETH Zurich.
- Addessi, William & Saltari, Enrico & Tilli, Riccardo, 2014. "R&D, innovation activity, and the use of external numerical flexibility," Economic Modelling, Elsevier, vol. 36(C), pages 612-621.
- Tor Eriksson & Zhihua Qin & Wenjing Wang, 2014. "Firm-level Innovation Activity, Employee Turnover and HRM Practices – Evidence from Chinese Firms," Economics Working Papers 2014-09, School of Economics and Management, University of Aarhus.
- 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.
- Eva Wachsen & Blind, K., 2011. "WP 115 - More flexibility for more innovation? Evidence from the Netherlands," AIAS Working Papers wp115, AIAS, Amsterdam Institute for Advanced Labour Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (TU Delft Library Repository Team).
If references are entirely missing, you can add them using this form.