Skills required for innovation: A review of the literature
AbstractResearch teams from 18 OECD countries used the methodology introduced by Crepon-Dugay and Mairesse (CDM) to analyze the impact of innovation on labour productivity using firm data from national innovation and administrative surveys. To ensure international comparability, the OECD ‘core’ CDM model did not include variables for which data were missing in some countries. In spite of this shortcoming, the results are broadly in line with theoretical hypotheses and previous studies and show a surprising degree of similarity between countries. This paper builds on the Canadian application of the ‘core’ model used for the OECD project. It uses to the full extent all information available on manufacturing establishments from the Canadian Survey of innovation 2005 linked with the Annual Survey of Manufactures and Logging (ASML). The estimated econometric model controls for selection bias, simultaneity, size of firm and industry effects. The main findings suggest that (1) export outside of the US market, size of the firm and use of direct or indirect government support are factors increasing the probability to innovate and having positive innovation sales. (2) Exports (both to the US and outside of the US market), cooperation with other firms and organizations, and high share of the firms’ revenue coming from sales to its most important client are all factors correlated with higher innovation expenditures per employees. Moreover, firms with a higher market share at the beginning of the period are spending more on innovation by the end of the period. (3) Firms with higher innovation expenditures per employee generate more innovation sales per employee. Other factors increasing innovation sales are human and physical capital and introduction of process innovations. (4) Finally, the firms generating more innovation sales per employees achieve higher labour productivity, even when the size of firms, the intensity of human and physical capital and labour productivity at the beginning are taken into account. The results add valuable further information to and are in line with the simpler model applied to 18 other OECD countries. The paper concludes with discussion of policy implications.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 09-16.
Length: 40 pages
Date of creation: 01 Sep 2009
Date of revision:
Innovation; skills; national innovation systems; labour market; education of innovation; effect of innovation on skills;
Other versions of this item:
- Petr Hanel, 2007. "Skills required for innovation: A review of the literature," Cahiers de recherche 07-23, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- L8 - Industrial Organization - - Industry Studies: Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-14 (All new papers)
- NEP-HRM-2009-11-14 (Human Capital & Human Resource Management)
- NEP-INO-2009-11-14 (Innovation)
- NEP-KNM-2009-11-14 (Knowledge Management & Knowledge Economy)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gu, Wulong & Baldwin, John R., 2004. "Innovation, Survival and Performance of Canadian Manufacturing Plants," Economic Analysis (EA) Research Paper Series 2004022e, Statistics Canada, Analytical Studies Branch.
- Jean-Philippe Cotis, 2006. "Benchmarking Canada's Economic Performance," International Productivity Monitor, Centre for the Study of Living Standards, vol. 13, pages 3-20, Fall.
- Daron Acemoglu, 2002.
"Technical Change, Inequality, and the Labor Market,"
Journal of Economic Literature,
American Economic Association, vol. 40(1), pages 7-72, March.
- Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc.
- Wesley M Cohen & Richard R Nelson & John P Walsh, 2003.
"Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not),"
Levine's Working Paper Archive
618897000000000624, David K. Levine.
- Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
- Hans Loof & Almas Heshmati, 2006.
"On the relationship between innovation and performance: A sensitivity analysis,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
- Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," Working Paper Series in Economics and Finance 0446, Stockholm School of Economics, revised 01 Oct 2001.
- Petr Hanel, 2004. "Innovation in the Canadian Service Sector," Cahiers de recherche 04-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September.
- David Card & John E. DiNardo, 2002.
"Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles,"
Journal of Labor Economics,
University of Chicago Press, vol. 20(4), pages 733-783, October.
- David Card & John E. DiNardo, 2002. "Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," NBER Working Papers 8769, National Bureau of Economic Research, Inc.
- John Baldwin & Wulong Gu, 2003. "Export-market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 634-657, August.
- Baldwin,John R. & Hanel,Petr, 2007.
"Innovation and Knowledge Creation in an Open Economy,"
Cambridge University Press, number 9780521037136, October.
- Baldwin,John R. & Hanel,Petr, 2003. "Innovation and Knowledge Creation in an Open Economy," Cambridge Books, Cambridge University Press, number 9780521810869, October.
- Moretti, Enrico, 2004.
"Human capital externalities in cities,"
Handbook of Regional and Urban Economics,
in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291
- Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895.
- Levy, Frank & Murnane, Richard J, 1996. "With What Skills Are Computers a Complement?," American Economic Review, American Economic Association, vol. 86(2), pages 258-62, May.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Baldwin, John R. & Johnson, Joanne, 1996. "Business strategies in more- and less-innovative firms in Canada," Research Policy, Elsevier, vol. 25(5), pages 785-804, August.
- De Loecker, Jan, 2007.
"Do exports generate higher productivity? Evidence from Slovenia,"
Journal of International Economics,
Elsevier, vol. 73(1), pages 69-98, September.
- Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Baldwin, John R., 1998. "Failing Concerns: Business Bankruptcy in Canada," Failing Concerns: Business Bankruptcy in Canada, Statistics Canada, Economic Analysis, number stcb1e, December.
- Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006.
"Innovation and Productivity Across Four European Countries,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 22(4), pages 483-498, Winter.
- Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
- Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 783-832.
- Don Drummond, 2006. "The Economists' Manifesto for Curing Ailing Canadian Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 13, pages 21-26, Fall.
- Richard R. Nelson & Sidney G. Winter, 2002. "Evolutionary Theorizing in Economics," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 23-46, Spring.
- Meng, Rüdiger, 2009. "Standort und Innovation - Innovationsaktivitäten und Forschungskooperationen von Unternehmen aus regionaler Perspektive," Arbeitsmaterial der ARL: Aufsätze, in: Innovationen im Raum - Raum für Innovationen: 11. Junges Forum der ARL, 21. bis 23. Mai 2008 in Berlin, pages 40-52 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luc Savard).
If references are entirely missing, you can add them using this form.