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Innovation is an important driver of improved competitiveness, productivity and growth potential. This report explores which workplace practices have the strongest links to innovative company behaviour, looking at innovation in the form of new or significantly changed products or processes, new or improved marketing methods, and organisational change. It also explores links between innovation and company performance and workplace well-being, and examines the role of social dialogue in enhancing performance, well-being and innovation. The use of monitoring instruments for internal quality and external developments turned out to be among the strongest determinants of overall innovation; the degree of workers’ autonomy was another important factor. The probability of innovation is boosted when strong work organisation structures are combined with direct employee participation – for instance, involvement in solving problems or improving the quality of production. An executive summary is available - see Related content.