Labour, unions and R&D in Italian firms

Armanda Cetrulo, Valeria Cirillo and Fabio Landini

Structural Change and Economic Dynamics, 2025, vol. 73, issue C, 262-281

Abstract: How and to what extent does organized labour contribute to shaping firms’ competitive strategies by fostering innovation and investments in R&D? Drawing on insights from evolutionary theories and industrial relations studies, this paper empirically investigates how firm-level collective bargaining impacts firms’ investments in intangible assets, including R&D. The paper underlines how in the workplace context, where workers and managers pursue conflicting interests, the presence of a strong trade union able to bargain can empower workers’ voice and persuade management to invest in innovation related assets rather than compete through cost cutting strategies. We leverage a comprehensive and representative survey of Italian non-agricultural companies conducted by the National Institute for Public Policy Analysis to test these predictions. Baseline estimates indicate that firm-level bargaining, particularly in highly unionized firms, is linked to investments in R&D and other intangibles. Further analysis suggests that work organization clauses are key drivers of this positive relationship.

Keywords: R&D; Intangibles; Unions; Collective bargaining; Organized labour (search for similar items in EconPapers)
JEL-codes: J50 O32 O33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:73:y:2025:i:c:p:262-281

DOI: 10.1016/j.strueco.2025.01.004

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