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Innovation, Learning Organizations and Industrial Relations

Author

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  • Peter Nielsen
  • Bengt-Åke Lundvall

Abstract

Innovation may be seen as a process of knowledge creation and the speed and direction of knowledge creation reflects the organizational set-up of the firm as well as its investments in R&D and training. Establishing ‘a learning organization’ where horizontal interaction and communication inside and across the borders of the firm is a major factor promoting knowledge creation in the context of a learning economy. An important issue is to what extent direct and indirect participation of employees in shaping the new form of organization is critical for its realization. On the basis of a unique data set covering 2000 Danish private firms it is demonstrated that firms combining several of the organizational traits of the learning organization are much more prone to introduce new products than the others. It is also demonstrated that such firms have involved employees in different forms of direct and indirect participation much more frequently than the rest. As more sectors become exposed to the need to engage in incremental product and service innovation the economic potential of diffusing good practices in terms of organization and participation is growing and needs to be reflected in firm strategies and public policies aiming at promoting innovation and knowledge creation.

Suggested Citation

  • Peter Nielsen & Bengt-Åke Lundvall, 2003. "Innovation, Learning Organizations and Industrial Relations," DRUID Working Papers 03-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:03-07
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    References listed on IDEAS

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    1. Bengt-Åke Lundvall, 2002. "Innovation, Growth and Social Cohesion," Books, Edward Elgar Publishing, number 2466.
    2. Reinhard Lund, 1998. "Organizational and Innovative Flexibility Mechanisms and their Impact upon Organizational Effectiveness," DRUID Working Papers 98-23, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Keld Laursen, 2002. "The Importance of Sectoral Differences in the Application of Complementary HRM Practices for Innovation Performance," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 139-156.
    4. Bengt-Âke Lundvall & Peter Nielsen, 1999. "Competition and transformation in the learning economy - Illustrated by the Danish case," Revue d'Économie Industrielle, Programme National Persée, vol. 88(1), pages 67-89.
    5. Bengt-ake Lundvall & Bjorn Johnson, 1994. "The Learning Economy," Industry and Innovation, Taylor & Francis Journals, vol. 1(2), pages 23-42.
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    2. Makó, Csaba & Illéssy, Miklós & Csizmadia, Péter, 2008. "A munkahelyi innovációk és a termelési paradigmaváltás kapcsolata. A távmunka és a mobilmunka példája [The relation of work-place innovations and the change of production paradigm. The example of d," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1075-1093.
    3. Paolo Pini & Grazia Santangelo, 2005. "Innovation types and labour organisational practices: A comparison of foreign and domestic firms in the Reggio Emilia industrial districts," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(4), pages 251-276.
    4. Davide Antonioli & Massimiliano Mazzanti & Paolo Pini, 2010. "Productivity, innovation strategies and industrial relations in SMEs. Empirical evidence for a local production system in northern Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 24(4), pages 453-482.
    5. Yannis Pierrakis & George Saridakis, 2019. "The role of venture capitalists in the regional innovation ecosystem: a comparison of networking patterns between private and publicly backed venture capital funds," The Journal of Technology Transfer, Springer, vol. 44(3), pages 850-873, June.
    6. Antonioli, Davide & Mazzanti, Massimiliano, 2017. "Towards a green economy through innovations: The role of trade union involvement," Ecological Economics, Elsevier, vol. 131(C), pages 286-299.
    7. Schwartz, Michael, 2006. "Die Learning Economy aus Netzwerkperspektive: Mechanismen und Probleme," Jena Contributions to Economic Research 2006,4, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.

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    More about this item

    Keywords

    Innovation; knowledge creation; learning economy;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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