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Do Workers Share Innovation Returns? A Study of the Spanish Manufacturing Sector

Do Workers Share Innovation Returns? A Study of the Spanish Manufacturing Sector This paper explores whether workers share innovation returns and how the size of innovation returns is affected by market conditions. Using a panel data of Spanish manufacturing firms during the period from 1990 to 1993, we answer affirmatively to both questions. Product and process innovations both generate returns, but such returns are higher for process innovations. The size of innovation returns seems to be affected positively by demand growth, by product standardization, and by low product market concentration. The three empirical results are in agreement with the theoretical predictions, such as Schmoockler’s (1966) theory of demand‐pool innovation, the price‐elasticity of demand effects postulated by Kamien & Schwartz (1970), and the replacement effect suggested by Arrow (1962). At the time of generating returns, process innovations are more affected by market conditions than are other innovations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Research The Journal of the Iberoamerican Academy of Management Emerald Publishing

Do Workers Share Innovation Returns? A Study of the Spanish Manufacturing Sector

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References (60)

Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1536-5433
DOI
10.1108/15365430480000507
Publisher site
See Article on Publisher Site

Abstract

This paper explores whether workers share innovation returns and how the size of innovation returns is affected by market conditions. Using a panel data of Spanish manufacturing firms during the period from 1990 to 1993, we answer affirmatively to both questions. Product and process innovations both generate returns, but such returns are higher for process innovations. The size of innovation returns seems to be affected positively by demand growth, by product standardization, and by low product market concentration. The three empirical results are in agreement with the theoretical predictions, such as Schmoockler’s (1966) theory of demand‐pool innovation, the price‐elasticity of demand effects postulated by Kamien & Schwartz (1970), and the replacement effect suggested by Arrow (1962). At the time of generating returns, process innovations are more affected by market conditions than are other innovations.

Journal

Management Research The Journal of the Iberoamerican Academy of ManagementEmerald Publishing

Published: Jul 1, 2004

Keywords: Innovation returns; Process; Demand; Market conditions

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