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Labour, unions and R&D in Italian firms

Author

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  • Cetrulo, Armanda
  • Cirillo, Valeria
  • Landini, Fabio

Abstract

How and to what extent does organized labour contribute to shaping firms’ competitive strategies by fostering innovation and investments in R&D? Drawing on insights from evolutionary theories and industrial relations studies, this paper empirically investigates how firm-level collective bargaining impacts firms’ investments in intangible assets, including R&D. The paper underlines how in the workplace context, where workers and managers pursue conflicting interests, the presence of a strong trade union able to bargain can empower workers’ voice and persuade management to invest in innovation related assets rather than compete through cost cutting strategies. We leverage a comprehensive and representative survey of Italian non-agricultural companies conducted by the National Institute for Public Policy Analysis to test these predictions. Baseline estimates indicate that firm-level bargaining, particularly in highly unionized firms, is linked to investments in R&D and other intangibles. Further analysis suggests that work organization clauses are key drivers of this positive relationship.

Suggested Citation

  • Cetrulo, Armanda & Cirillo, Valeria & Landini, Fabio, 2025. "Labour, unions and R&D in Italian firms," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 262-281.
    • Handle: RePEc:eee:streco:v:73:y:2025:i:c:p:262-281
    DOI: 10.1016/j.strueco.2025.01.004
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    More about this item

    Keywords

    R&D; Intangibles; Unions; Collective bargaining; Organized labour;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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