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When are recruited competences supportive of innovation? Inter-industry differences in the importance of similarity and diversity

Author

Listed:
  • Sverre J. Herstad
  • Tore Sandven

Abstract

Building on recent evolutionary thinking, this paper links the present innovation performance of Norwegian firms to their past aggregate inflows of experienced employees through the labor market. In the upper part of OECDs technology intensity classification, firms strengthen their capacity to generate novelty sales by recruiting from within their own sector domains. By contrast, this form of recruitment is negatively associated with performance in low-tech industries. Aggregate inflows from related industries is generally supportive of performance, while inflows from prior employment in the research system is not. This underscores the dependence of industrial innovation on specialized competences and work practices that originate in the domain of industry itself; and, thus, the interdependencies between firms and larger industrial agglomerations.

Suggested Citation

  • Sverre J. Herstad & Tore Sandven, 2015. "When are recruited competences supportive of innovation? Inter-industry differences in the importance of similarity and diversity," Papers in Evolutionary Economic Geography (PEEG) 1505, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2015.
    • Handle: RePEc:egu:wpaper:1505
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    File URL: http://econ.geo.uu.nl/peeg/peeg1505.pdf
    File Function: Version February 2015
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    Cited by:

    1. Aysa Ipek Erdogan, 2023. "Drivers of SME Growth: Quantile Regression Evidence From Developing Countries," SAGE Open, , vol. 13(1), pages 21582440231, March.

    More about this item

    Keywords

    Labor mobility; related variety; knowledge integration; innovation; Norway;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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