This chapter surveys the literature on the effects labor market regulations on innovation, technological change and productivity growth. We consider several channels whereby labor regulations can impact innovation by increasing nonwage labor costs. In particular, the increased incentives for directed labor-saving technological change that raises capital intensity due to labor market distortions, are discussed. We also review the literature on the impact of skill biased technological change on employment and the labor share in both developed and developing countries. Evidence is provided that search costs and skill mismatch due to contractual frictions impinge on technological change and human capital accumulation. Furthermore, we elaborate the influence of labor regulations on the future of work as employers seek automation solutions or alternative work arrangements. We also explore theoretical channels and empirical evidence that the reduction in labor mobility and churning due to labor regulations inhibits technical knowledge spillovers.