Employment Protection Legislation, Multinational Firms, and Innovation

Griffith, Rachel; Macartney, Gareth

doi:10.1162/rest_a_00348

Cited by 111 publications

(69 citation statements)

References 43 publications

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“…Similarly, greater employment protection may encourage firms to invest in firm-specific human capital that benefits productivity (Autor, 2003;Wasmer, 2006). Griffith and Macartney (2010) find that multinational firms do more patenting of incremental innovations in relatively high EPL countries and more patenting of radical innovations in low EPL countries. Such heterogeneous effects indicate that it may be difficult to identify the impact of a change in EPL on R&D http://www.rei.unipg.it/rei/article/view/128 11 expenditure or patenting in a cross-country study based on aggregate data.…”

Section: Framework Policiesmentioning

confidence: 80%

Innovation and Growth: Considerations for Public Policy

Westmore

2013

Review of Economics and Institutions

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This paper uses panel regression techniques to assess the policy determinants of private sector innovative activity -proxied by R&D expenditure and the number of new patents -across 19 OECD countries. The relationship between innovation indicators and multifactor productivity (MFP) growth is also examined with a particular focus on the role of public policies in influencing the returns to new knowledge. The results establish an empirical link between R&D and patenting, as well as between these measures of innovation intensity and MFP growth. Innovation specific policies such as R&D tax incentives, direct government support and patent rights are found to be successful in encouraging the innovative activities associated with higher productivity growth. However, direct empirical evidence of the positive effects of these policies on productivity is less forthcoming. A pervasive theme from the analysis is the importance of coupling policies aimed at encouraging innovation or technological adoption with well designed framework policies that allow knowledge spillovers to proliferate. In particular, the settings of framework policies relating to product market regulation, openness to trade and debtor protection in bankruptcy provisions are found to be important for the diffusion of new technologies.

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Section: Framework Policiesmentioning

confidence: 80%

Innovation and Growth: Considerations for Public Policy

Westmore

2013

Review of Economics and Institutions

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“…This explains why, for instance, countries with stringent EPL tend to have smaller ICT intensive sectors (see Bartelsman et al, 2010), an observation confirmed by recent OECD empirical evidence showing that "higher EPL lowers productivity growth by handicapping firms that operate in environment subject to greater technological change" (Andrews and Criscuolo, 2013). Furthermore, there is also evidence showing that multinational firms tend to concentrate their more radical and disruptive innovative activities in countries with low EPL where resource reallocation is easier (Griffith and Macartney, 2014).…”

Section: Labour Market Regulationmentioning

confidence: 90%

“…The effects of EPL on innovation are however more ambiguous than the discussion so far may suggest, although empirical evidence for the beneficial effects of stringent EPL on innovation is still rather scarce (see Andrews and Criscuolo, 2013;Griffith and Macartney, 2014). EPL increases job security, and the greater enforceability of job contracts can increase worker investment in innovative activity.…”

Section: Labour Market Regulationmentioning

confidence: 99%

Зарубежный Опыт Обучения Населения Цифровой Грамотности

Афанасьевич¹,

Валерьевна²

2018

Russian Journal of Labor Economics

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Complete document available on OLIS in its original formatThis document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. DSTI/ICCP(2015)18/FINAL Unclassified English -Or. English DSTI/ICCP(2015)18/FINAL 32 FOREWORDThis report was prepared as part of the documentation for Panel 1.2 of the OECD Ministerial Meeting on the Digital Economy, "Stimulating Digital Innovation across the Economy". It provides information and discussion on policies for the successful adoption and use of information and communication technologies (ICTs) across the economy.Preparation of the document was undertaken by Christian Reimsbach-Kounatze, OECD, based on case studies provided by a group of volunteer countries including: Canada, China, Colombia, Germany, Japan, Korea, Mexico, Norway and Sweden. These case studies are made available in the Annex of the report.The Committee on Digital Economy Policy approved the declassification of this report in May 2016. It is published under the responsibility of the Secretary-General of the OECD. Digital innovation refers to: (i) in a narrow sense, the implementation of a new or significantly improved ICT product (good or service), i.e. ICT product innovation; and (ii) in a broader sense, to the use of ICTs to implement a new or significantly improved product, process, marketing method, or organisational method, i.e. ICT-enabled innovation. ICT product innovation is a major factor for the progressive decrease in ICT prices which remains a key driving force for ICT adoption, and thus for ICT-enabled innovation, across the economy. Data and its analysis have become a fundamental input to innovation, akin to research and development (R&D).Data are an infrastructural resource -a form of capital that cannot be depleted and that can be used for a theoretically unlimited range of productive purposes. Available evidence suggests that firms using data-driven innovation (DDI) have raised productivity faster than non-users by around 5-10%. Greater access to data also has beneficial spill-overs, whereby data can be used and re-used to open up significant growth opportunities, or to generate benefits across society in ways that could not be foreseen when the data were created. In this sense, data are the new "R&D" for 21st century innovation systems.The adoption and use of ICTs including data analytics are associated with higher innovation performance. The share of businesses adopting ICTs is (20% to up to 70%) higher among innovators, depending on the year, the type of ICTs and the type of innovation considered. While differences between innovators and non-innovators are diminishing over time with regard to adoption and use of basic ICTs (such as broadband), they persist and even grow with respect to the use of more advanced ICTs (such as cloud computing). Evidence also shows that firms using data and analytics are more likely to innovate. Furtherm...

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“…On the one hand, the Danish-type flexicurity with relatively weak employment protection but relatively high unemployment benefits might be particularly conducive for start-up formation and radical innovation but, on the other hand, weak employment protection may deteriorate employees' incentives to innovate in established corporations (see, e.g., , Bozkaya and Kerr, 2013, and Griffith and Macartney, 2014 for different results).…”

Section: Other Indirect Innovation Policiesmentioning

confidence: 99%