Do innovative sustainable workplaces provide better productivity, working conditions and life-long learning?

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1 Do innovative sustainable workplaces provide better productivity, working conditions and life-long learning? Steven Dhondt (TNO, The Netherlands)

2 2 Workplace innovation (WPI): what do we mean? WPI is about learning environments which help employees to develop themselves. But: it is a multilevel concept Micro-level The healthy and learning working environment Meso-level The healthy company Macro-level The healthy economy? Relationships between levels are not simple Higher levels aren t just aggregates Unintended consequences

3 3 Importance of WPI at micro level: the learning workplace Karasek (1979): Low Job demands High Learning opportunities Decision latitude High Low Easy jobs Boring jobs Active jobs Stress jobs Stress risks

4 4 Importance of WPI at meso level : the learning company WPI = dynamic capabilities ECIM: 13% of Dutch companies are social innovators WEA: 4 sources for social innovation: strategic orientation flexible organisation smarter organisation product-market orientation Active jobs precondition for intrapreneurship: The Netherlands (GEM, 2008): Enormous growth of self employed, but very little SE oriented at growth and innovative companies Organisational performance Absenteism More intrapreneurs (3% of workers) oriented at growth

5 5 Importance of WPI at macro-level 1: Growth accounting and intangible assets Traditional approach to growth accounting: Growth of capital goods Growth of labour New approach: more information about MFP Importance of intermediate goods intangibles Classification of Intangibles, Corrado, Hulten, and Sichel ( 2009) 1. Computerized information Computer software Computerized databases 2. Scientific and creative property Science and engineering R&D Mineral exploration Copyright and license costs Other product development, design, and research expenses 3. Economic competencies Brand equity Firm-specific human capital Organizational structure

6 6 Importance of WPI at macro-level 1: What happens if you don t invest in economic competencies? Fukao (2009) shows what happens when you do not invest in economic competencies If intangible capital deepening in Japan was as large as in the US, Japanese productivity growth would catch up with the US. Main reasons: Japan has mainly been investing in patents and tangible assets Japan has considerably reduced investment in training and remuneration of executives

7 7 Importance of WPI at macro-level 2: How to destroy growth? The example of the British construction industry (Cremers, 2011) Thatcher-deregulation destroyed the social mechanisms needed for skills enhancement, productivity and health Impact: Low productivity, low quality of produced houses Knowledge and skill needs to be imported (ex. OS London 2012) Lower tax incomes + health costs/risks passed on to individual/state

8 8 Challenges for innovative sustainable workplaces Dominant thinking stresses OECD: reduce EPL EU: more self-employed for entrepreneurship and innovation WPI stresses EPL: pre-condtition for learning WPI relies on intrapreneurship Strategic management: basis for innovation WPI builds on partnership between employees and management More patents, more R&D, more ICT? WPI builds on worker knowledge, organisational competencies

9 9 Thank you

10 10 Sources Cremers, J. (2011) Kanttekeningen bij de nieuwe zelfstandigheid. Tijdschrift voor Arbeidsvraagstukken, (27), 3, CBS (Statistics Netherlands), (2010). The Dutch Growth Accounts The Hague: SN. Corrado, C., Hulten, C. and D. Sichel (2009). Intangible Capital and U.S. Economic Growth. Review of Income and Wealth 55, pp Fukao, K., T. Miyagawa, K. Mukai, Y. Shinoda, and K. Tonogi (2009). Intangible Investment in Japan: Measurement and Contribution to Economic Growth. Review of Income and Wealth 55, pp