Wage-Setting Institutions and R&D Collaboration Networks

Ben Ferrett and Vasileios Zikos

Discussion Paper Series from Department of Economics, Loughborough University

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.

Keywords: Networks; R&D collaboration; unionisation structures. (search for similar items in EconPapers)
JEL-codes: J50 L13 (search for similar items in EconPapers)
Date: 2012-04, Revised 2012-04
New Economics Papers: this item is included in nep-ino and nep-lab
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Journal Article: Wage-Setting Institutions and R&D Collaboration Networks (2013)
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