Unionization Structure, Licensing and Innovation
AbstractThis discussion paper led to a publication in the 'International Journal of Industrial Organization' , 29(2), 232-41. Taking technological differences between firms as given, we show that the technologically advanced firm has a stronger incentive for technology licensing under a decentralized unionization structure than with centralized wage setting. Furthermore, We show that, in presence of licensing, the incentive for innovation may also be stronger under decentralized unions. Unions have a clear preference for centralization only if productivity improvements are relatively small.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 05-109/4.
Date of creation: 06 Dec 2005
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Web page: http://www.tinbergen.nl
Licensing; downstream market; upstream market; innovation; welfare;
Other versions of this item:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-BEC-2006-01-24 (Business Economics)
- NEP-INO-2006-01-24 (Innovation)
- NEP-MIC-2006-01-24 (Microeconomics)
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