Wage-Setting Institutions and R&D Collaboration Networks
We analyse how union structures that differ in the degree of wage-setting centralization affect the pattern of R&D network formation. Within the context of a three-firm industry, a central union that sets a uniform wage is shown to induce a partial R&D network that includes two firms but excludes the third. In contrast, we find that, under less centralized union structures, firms have incentives to form R&D networks with a larger number of alliances. This result is consistent with the stylised facts for industrialised countries: recent decades have seen an upsurge in R&D alliances along with labour market deregulation towards more flexible wage-setting institutions.
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|Date of revision:||Apr 2012|
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- Justus Haucap & Christian Wey, 2004.
"Unionisation structures and innovation incentives,"
Royal Economic Society, vol. 114(494), pages C149-C165, 03.
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- John Hagedoorn & Rajneesh Narula, .
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STEP Report series
199805, The STEP Group, Studies in technology, innovation and economic policy.
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