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Investment in training and skills for innovation in entrepreneurial start-ups and incumbents: evidence from the United Kingdom

Author

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  • Maksim Belitski

    (University of Reading)

  • Rosa Caiazza

    (Parthenope University of Naples)

  • Yuliya Rodionova

    (The Russian Presidential Academy of the National Economy and Public Administration)

Abstract

Firms that aim to compete globally have to invest in knowledge and have to use knowledge returns to increase their competitive advantage. This paper extends our understanding of returns to knowledge investment by focusing on innovative training and skills in entrepreneurial organizations and incumbents, as well as the role of legal protection in further investment in knowledge. Using novel innovation data for a panel of 4049 firms in the UK, this paper estimates the training premium for the country’s most innovative firms. Returns on training vary between start-ups and incumbents and during economically-constrained times. Specifically, the study highlights evidence for higher returns on training during times of crisis and lower returns before the crisis. In filling a gap in the calculation of returns to investment in knowledge creation within organization, the study advances our understanding on how entrepreneurial firms need to invest in training and skills to increase innovation outcomes.

Suggested Citation

  • Maksim Belitski & Rosa Caiazza & Yuliya Rodionova, 2020. "Investment in training and skills for innovation in entrepreneurial start-ups and incumbents: evidence from the United Kingdom," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 617-640, June.
    • Handle: RePEc:spr:intemj:v:16:y:2020:i:2:d:10.1007_s11365-019-00606-4
    DOI: 10.1007/s11365-019-00606-4
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    5. Iuliia Iliashenko & Fragkoulis Papagiannis & Patrizia Gazzola & Nataliia Cherkas & Daniele Grechi, 2023. "Entrepreneurial Behaviour and Organisational Propensity to Innovate in a Public-Sector Context," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(1), pages 111-156, March.
    6. Xie, Xuemei & Wu, Yonghui & Martínez, José Manuel Guaita, 2023. "More is not always better: Reconciling the dilemma of R&D collaboration in high-tech industries in transition economies," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    7. Colombelli, Alessandra & Belitski, Maksim & D’Amico, Elettra, 2023. "Artificial Intelligence and Firm Innovation: The Resource-Allocation Perspective," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202304, University of Turin.
    8. Guckenbiehl, Peter & Corral de Zubielqui, Graciela & Lindsay, Noel, 2021. "Knowledge and innovation in start-up ventures: A systematic literature review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    9. Škare, Marinko & Blanco-Gonzalez-Tejero, Cristina & Crecente, Fernando & del Val, Maria Teresa, 2022. "Scientometric analysis on entrepreneurial skills - creativity, communication, leadership: How strong is the association?," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    10. Colombelli, Alessandra & Belitski, Maksim & D’Amico, Elettra, 2023. "Artificial Intelligence and Firm Innovation: The Resource-Allocation Perspective," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202316, University of Turin.

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