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Wage-Setting Institutions and R&D Collaboration Networks

Author

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  • Ben Ferrett

    () (School of Business and Economics, Loughborough University, UK)

  • Vasileios Zikos

    () (University of Surrey, Guildford, UK)

Abstract

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.

Suggested Citation

  • Ben Ferrett & Vasileios Zikos, 2012. "Wage-Setting Institutions and R&D Collaboration Networks," Discussion Paper Series 2012_02, Department of Economics, Loughborough University, revised Apr 2012.
  • Handle: RePEc:lbo:lbowps:2012_02
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    References listed on IDEAS

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    Cited by:

    1. Tran, Tat Thanh & Zikos, Vasileios, 2017. "R&D networks among suppliers and manufacturers," Economic Modelling, Elsevier, vol. 60(C), pages 151-161.

    More about this item

    Keywords

    Networks; R&D collaboration; unionisation structures.;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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