Template-type: ReDIF-Paper 1.0
Author-Name: Weehuizen, Rifka
Author-Email: r.weehuizen@merit.unimaas.nl
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Sanditov, Bulat
Author-Email: b.sanditov@merit.unimaas.nl
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Cowan, Robin
Author-Email: r.cowan@merit.unimaas.nl
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Productivity effects of innovation, stress and social relations
Abstract: Innovation is a source of increasing productivity, but it is also a 
	 source of stress. Psychological research shows that moderate stress 
	 increases the productivity of an actor, but above a certain level, 
	 additional stress decreases productivity. Stress is reduced by coping 
	 behaviour of the actor, and in addition it is buffered by social 
	 relations. However, high levels of stress negatively affect social 
	 relations, causing social erosion. In a formal model including 
	 inter-agent dynamics, we show that the variables moderating stress 
	 levels are of crucial importance for identifying the overall effects of 
	 different rates of innovation on productivity. The model shows among 
	 other things that the existence and nature of relationships of people 
	 determine the extent to which a certain rate of innovation effectively 
	 results in increasing productivity. In addition, it shows the 
	 possibility of multiple equilibria - under some parameter values both 
	 high- and low-stress steady states exist; and the dynamics exhibit 
	 hysteresis. At very high levels of stress, innovation can result in a 
	 dissolution of social relations, and has a negative relationship with 
	 the rate of economic growth.
Classification-JEL: O4, J28, C61
Keywords: innovation, work-related stress, social relationships
Series: UNU-MERIT Working Papers
Creation-Date: 2008
Number: 2008-015
File-URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-015.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2008015