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Training and Innovation

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  • Stefan Bauernschuster
  • Oliver Falck
  • Stephan Heblich

Abstract

Research analyzing the importance of human capital for innovation usually focuses on secondary and tertiary education. This paper takes a different perspective by focusing on in-firm training. We argue that continuous training guarantees access to leading-edge knowledge and thus increases a firm's propensity to innovate. Using German establishment-level data, we show a strong association between lagged continuous training and innovation. Applying instrumental variable methods, we cautiously argue that the association between training and innovation is indeed a causal effect. In the quest for a relevant and valid instrument, we exploit legal regulations of the German Works Constitution Act. (c) 2009 by The University of Chicago. All rights reserved..

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Human Capital.

Volume (Year): 3 (2009)
Issue (Month): 4 ()
Pages: 323-353

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Handle: RePEc:ucp:jhucap:v:3:y:2009:i:4:p:323-353

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Web page: http://www.journals.uchicago.edu/JHC/

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Cited by:
  1. Michael Fritsch & Alina Sorgner, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," Jena Economic Research Papers 2013-004, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Popov, Alexander, 2014. "Credit constraints and investment in human capital: Training evidence from transition economies," Journal of Financial Intermediation, Elsevier, vol. 23(1), pages 76-100.
  3. Uwe Cantner & Wolfgang Gerstlberger & Ipsita Roy, 2014. "Works Councils, Training Activities and Innovation: A Study of German Firms," Jena Economic Research Papers 2014-006, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Peukert, Christian, 2011. "External technology supply and client-side innovation," ZEW Discussion Papers 11-082, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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