If worker-representatives have appropriate mechanisms for sharing information with the workforce, could increase productivity and innovation by improving information flow within firms.
In 2018, Germany was ranked as the world's most innovative economy, outperforming the US.
Stronger employee representation laws are positively associated with aggregate innovation.
Property rights theory arguments against codetermination suggest that codetermination might create tension between innovation and employment, and may increase the time needed to make decisions.
There is suggestive evidence for a positive impact of co-determination on innovation.
51% of Swedish managing directors reported that codetermination led to new ideas being presented to management
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The Contribution of High-Skilled Immigrants to Innovation in the United States
Codetermination in Sweden: Myth and Reality
Co-Determination and Innovation
Employee Representation Legislations and Innovation
The 2018 Global Competitiveness Report
Economic Democracy at Work: Why (and How) Workers Should be Represented on US Corporate Boards
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