Firms' Innovation Activity and Numerical Flexibility

Amaia Altuzarra and Felipe Serrano

ILR Review, 2010, vol. 63, issue 2, 327-339

Abstract: This study investigates the relationship between manufacturing firms' innovation activity (measured by product innovation, process innovation, and R&D activities) and their numerical flexibility (proxied by the rate of fixed-term contracts). Estimates using data from Spain's Survey on Firms' Strategies (EESE) for the years 2000–2002 reveal a non-monotonic relationship: a firm's probability of innovating and carrying out R&D increased as the rate of use of temporary and other non-core workers increased, but only up to a threshold, beyond which this probability decreased.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:63:y:2010:i:2:p:327-339

DOI: 10.1177/001979391006300208

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