This paper examines the effect of the German co-determination law of 1976 (MitbestG) on the innovative activity of … German firms. Co-determination applies to firms with 2000 employees or more. Data from 1971-1976 and 1981-1990 on 148 firms …, we compare the co-determined firms with others before and after 1976. The results do not support the view that co-determination …