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Co-determination and Innovation

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Author Info
Kraft, Kornelius () (University of Dortmund)
Stank, Jörg (HOCHTIEF AG)
Dewenter, Ralf () (Technische Universität Ilmenau)
Abstract

This paper examines the effect of the German co-determination law of 1976 (MitbestG) on the innovative activity of German firms. Co-determination applies to firms with 2000 employees or more. Data from 1971-1976 and 1981-1990 on 148 firms are used to compare the number of patents granted to co-determined firms before and after the introduction of the law. Several control variables are applied and in particular, in order to avoid a possible bias from specific effects of firm size, we compare the co-determined firms with others before and after 1976. The results do not support the view that co-determination slows down technological progress and reduces innovativeness.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4487.

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Length: 45 pages
Date of creation: Oct 2009
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Handle: RePEc:iza:izadps:dp4487

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Related research
Keywords: co-determination; innovation; patents;

Find related papers by JEL classification:
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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This page was last updated on 2009-11-30.

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