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Complementarity in Training Practices Methodological Notes and Empirical Evidence for a Local Economic System

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  • Giovanni Guidetti
  • Susanna Mancinelli
  • Massimiliano Mazzanti

Abstract

The paper develops a conceptual framework aimed at analyzing the profitability of financing general training, based on the notion of complementarity among productive factors. First, we show that a simple application of the theoretical analysis based on the lattice theory and the notion of supermodularity can provide a suitable framework for studying the complementarity relationships characterizing the productive factors. Second, we discuss empirical evidence on complementarity between general and specific training with respect to firm productivity, exploiting a detailed and specifically constructed survey based dataset. Complementarity between training forms is, thus, tested in a discrete framework. We show that complementarity holds for most specifications, though the outcome might be dependant on other firm-related features and strategies. The multivariate analysis also shows, on the same model framework, that R&D and training expenditures are emerging as the main explanatory drivers for productivity. Our results on training complementarity and productivity drivers indicate that complementarity related to training forms matters, however, mere training adoption is probably not sufficient: the level of training provided is positively correlated with firm productivity.

Suggested Citation

  • Giovanni Guidetti & Susanna Mancinelli & Massimiliano Mazzanti, 2009. "Complementarity in Training Practices Methodological Notes and Empirical Evidence for a Local Economic System," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 39-56, January.
  • Handle: RePEc:icf:icfjae:v:08:y:2008:i:1:p:39-56
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    Cited by:

    1. Susanna Mancinelli & Massimiliano Mazzanti, 2009. "Innovation, networking and complementarity: evidence on SME performances for a local economic system in North-Eastern Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 567-597, September.
    2. Patrick Llerena & Valentine Millot, 2013. "Are Trade Marks and Patents Complementary or Substitute Protections for Innovation," Working Papers of BETA 2013-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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