Innovation, Working Conditions and Industrial Relations: Evidence for a Local Production System

Given that recent studies highlight the potentially negative impact of 'new' or 'high performance' work practices on workers, the main objective of the present study is to investigate the effects of such work practices on workers' well-being for a northern Italy local production system. In addition, it is also important not to overlook the role of other firms' innovation activities and industrial relations. Thus, the empirical strategy aims to disentangle the role of innovation intensity in four different areas (technology, organization, training and ICT) and that of cooperative industrial relations at firm level on working conditions. The evidence is mixed. On the one hand, innovations have an overall positive effect on working conditions. However, this effect is weak and for specific organizational aspects, is negative. On the other hand, cooperative industrial relations are always positively and robustly linked to workers' well-being.