We analyse the link between human resource (HR) practices and the ability of firms to capture value from investments in knowledge-innovation and present evidence that supports a positive relationship between the two, employing an empirical design that utilises a unique data set that is based on a quasi-experiment. Our findings suggest that an additional pound invested in R&D, increases the rate of return of businesses that receive support in the form of employees and management/entrepreneur training, as well as improved workforce retention and recruitment, by significantly more than businesses that didn't receive such support. This has important implications for managerial practice and public policy.
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Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number
DYNREG41.
Length: 41 pages Date of creation: 2009 Date of revision: Handle: RePEc:esr:wpaper:dynreg41
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