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Exploring the Relationship Between Human Capital and Innovation at the Firm Level: A study on a Sample of European Firms

Author

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  • D'AMORE, Rosamaria

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

  • IORIO, Roberto

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

  • LUBRANO LAVADERA, Giuseppe

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

Abstract

In this paper, we explore the relationship between the human capital “embodied” in the workforce and the innovative capabilities of the firm, adopting an international comparative perspective. In fact data come from a survey (EFIGE) run in seven European countries during the 2007-2009 period. They are analysed with several models of multivariate analysis also with the support of a semi-parametric model. Our results show a positive relationship between the ratio of graduated employees and the percentage of turnover from innovative products, being the share of personnel employed in R&D constant. This relationship is not linear: we find decreasing marginal returns for human capital and R&D. We then find a complementarity between human capital and R&D: the strength of the link between human capital and innovation is higher when the firm’s R&D increases. We also find some significant differences in the intensity of the human capital/innovation link across different countries.

Suggested Citation

  • D'AMORE, Rosamaria & IORIO, Roberto & LUBRANO LAVADERA, Giuseppe, 2017. "Exploring the Relationship Between Human Capital and Innovation at the Firm Level: A study on a Sample of European Firms," CELPE Discussion Papers 144, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:0144
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    Cited by:

    1. Agata Sudolska & Justyna Łapińska, 2020. "Exploring Determinants of Innovation Capability in Manufacturing Companies Operating in Poland," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    2. Matteo Bugamelli & Francesca Lotti & Monica Amici & Emanuela Ciapanna & Fabrizio Colonna & Francesco D�Amuri & Silvia Giacomelli & Andrea Linarello & Francesco Manaresi & Giuliana Palumbo & Filippo , 2018. "Productivity growth in Italy: a tale of a slow-motion change," Questioni di Economia e Finanza (Occasional Papers) 422, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Human capital; R&D; Innovation;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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