Abstract
This article argues that the politics of new technology and job redesaign at the firm level is decisively influenced by 'external' political-economic conditions, and must be analysed from a broad perspective. The article compares the experiences of Volvo, a case of labour inclusion of industrial innovation, and British Leyland, a case of labour exclusion, and shows that the two firms have pursued two very different innovation strategies. Volvo's emphasis on upgrading assembly work reflects union demands, but should first and foremost be seen as a response to Swedish labour market conditions; in particular, high rates of labour turnover due to full employment and solidaristic wage policy. Operating under different labour and market conditions, British Leyland has been under much less pressure to break with traditional assembly-line principles.