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Competencies, Innovation And Profitability Of Firms

Author

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  • Ada Leiponen

Abstract

This empirical study investigates the impact of competencies on firms' economic perfomance. A panel dataset of Finnish manufacturing firms is used to assess the effects of education and innovation on profitability. The differences between innovators and non-innovators, and between product- and process-innovators are also examined, to illuminate the interactions between innovation and skills. The results indicate that educational measures of competence are significantly associated with profitability. First, interactions between different levels and fields of education have the most important effects. For example, the positive effect of research skills is conditioned by a sufficient share of employees with general skills acquired in higher education. Second, profitability of innovating firms is determined differently from that of non-innovating firms, in particular, educational competencies are more important for innovators. Finally, the determinants of profitability. of product innovators differ from those of process innovators, i.e., different competencies complement different types of innovation.

Suggested Citation

  • Ada Leiponen, 2000. "Competencies, Innovation And Profitability Of Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    • Handle: RePEc:taf:ecinnt:v:9:y:2000:i:1:p:1-24
    DOI: 10.1080/10438590000000001
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    References listed on IDEAS

    as
    1. Leiponen, Aija, 1996. "Education and Innovative Capabilities," Discussion Papers 562, The Research Institute of the Finnish Economy.
    2. Mueller,Dennis C., 2009. "Profits in the Long Run," Cambridge Books, Cambridge University Press, number 9780521101592.
    3. Lynne G. Zucker & Michael R. Darby & Jeff Armstrong, 1994. "Intellectual Capital and the Firm: The Technology of Geographically Localized Knowledge Spillovers," NBER Working Papers 4946, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    education; competencies; innovation; profitability; JEL classifications: 031; I21; L60;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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