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productivity is the only way that the firm can compete in the highly competitive footwear market, according to Molaguero. The search for greater productivity is also accompanied by a system of rewards and incentives. With respect to employment quality, the impact of this innovation has been limited, since only two employees have been trained to operate the new system. However, the introduction of the new technology implied a redistribution of tasks among the firm’s employees. According to Molaguero, the relationship with the union is good. Although there were some initial concerns with the arrival of new technology, there were no major difficulties. Finally, Molaguero believes that the government should give greater priority to technical education.
Summary From the four representatives interviewed, we can discern two clearly different situations related to the effects of innovation on employment. On the one hand, firms belonging to the high-tech and the export sectors have achieved increases, albeit small, in employment and substantial improvements in the quality of their labor force as a consequence of innovation activities. On the other hand, domestic market-oriented and service sector firms seem to have achieved significant productivity gains and cost reductions while maintaining the same number of employees. In the domestic market-oriented firm, the impact on the quality of employment was limited, while in the service sector firm, the impact was greater, especially with regard to staff training. Therefore, taking all these cases together, we can say that the innovation process did not lead to job losses and in general it implied improvements in the quality of the labor force. Another issue that emerged frequently in the interviews is the possible endogeneity of innovation to the labor market regulation. While labor regulations were not presented as a real obstacle to innovation by the companies, they indicated that the rigidity of these rules makes the dynamics required to carry out innovation more complex. These difficulties probably come from the need for a tripartite negotiation (government, firms, and unions) by industry that ignores the particularities of each company and the particularities of their innovation processes. Related to the previous discussion, the importance of a good relationship with the union, as well as good communication with and participation of workers in the innovation process as a
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