Unionization Structure, Licensing and Innovation
Taking technological differences between firms as given, we show that the technologically advanced firm has a stronger incentive for technology licensing under a decentralized unionization structure than with centralized wage setting. Furthermore, We show that, in presence of licensing, the incentive for innovation may also be stronger under decentralized unions. Unions have a clear preference for centralization only if productivity improvements are relatively small.
|Keywords||downstream market, innovation, licensing, upstream market, welfare|
Mukherjee, A., & Pennings, H.P.G.. (2005). Unionization Structure, Licensing and Innovation (No. TI 05-109/4). Retrieved from http://hdl.handle.net/1765/7427