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Employee ownership and technological innovation: do worker cooperatives innovate?

Author

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  • Thibault Mirabel

    (Capital Collectif)

  • Aurélien Quignon

    (ICN Business School)

Abstract

This article examines the relationship between employee ownership and technological innovation. The impact of worker cooperatives' democratic governance on innovation is debated-some highlight financial constraints and slow decision-making as disadvantages, while others emphasize participatory structures and knowledge-sharing as advantages for innovation. Using a balanced panel of French worker cooperatives from 2014 to 2018, we find nuanced relationship: the share of worker-owners among workers positively influences innovation, whereas the share of worker-owners among owners negatively impacts innovation, providing empirical evidence for both the advantage and disadvantage hypotheses. Regional spillover effects also play a significant role. These findings challenge the notion that worker cooperatives are inherently less innovative than conventional firms and highlight the importance of ownership distribution and external conditions in shaping innovation outcomes.

Suggested Citation

  • Thibault Mirabel & Aurélien Quignon, 2025. "Employee ownership and technological innovation: do worker cooperatives innovate?," Post-Print hal-05430064, HAL.
    • Handle: RePEc:hal:journl:hal-05430064
    DOI: 10.1080/13504851.2025.2606148
    Note: View the original document on HAL open archive server: https://hal.science/hal-05430064v1
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