We show the effects of the bargaining power of labour unions on product innovation under decentralised and centralised … union bargaining power increases innovation if bargaining is decentralised, the market expansion effect is weak and the cost … of innovation is moderate but low. Otherwise, a higher union bargaining power reduces innovation. Hence, whether a higher …

. We exploit firm-level panel data on product and process innovation activities in the United Kingdom and find that the … countries increased process innovation and reduced product innovation. This implies that the innovation response to labor supply …-skill intensity of firm production as well as firm size. In addition, the reduction in product innovation is lessened for firms whose …