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Schaden Strukturreformen des Arbeitsmarkts der Innovation?

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  • Alfred Kleinknecht

Abstract

Mainstream economists continually plea for “structural reforms” of labour markets aiming at easier firing, more (downward) wage flexibility and a more modest welfare state. In Anglo-Saxon countries like the USA, Australia, New Zealand or the UK, such reforms already took place, while “Old Europe” is lagging behind. This paper gives theoretical arguments why such structural reforms are damaging to innovation. Empirical studies show that such arguments are realistic. Studies at macro and at enterprise level show that a “Garage Business” model of innovation (as in Silicon Valley) can still function under a “hire & fire” labour market regime; Schumpeter’s “routine model” of innovation, however, is functioning much better under rigid “Old Europe” labour market regimes. Our findings may explain why US firms in established industries like automobiles have hard times competing against European or Japanese supplier.

Suggested Citation

  • Alfred Kleinknecht, 2014. "Schaden Strukturreformen des Arbeitsmarkts der Innovation?," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 40(3), pages 417-428.
    • Handle: RePEc:clr:wugarc:y:2014v:40i:3p:417
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