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Workforce education and corporate innovation

Author

Listed:
  • Lingwei Li
  • Linlu Liu
  • Hai Wu

Abstract

The average workforce education near firms’ research centers facilitates firms’ matching with innovation talents and acquisition of knowledge. This study documents a positive association between the average education level in the metropolitan statistical areas (MSAs) where firms’ research centers are located and the quantity and quality of innovation outputs. The results are confirmed by controlling for various measures of MSA-level economic, population, and employment conditions, as well as research-center level analyses which control for firm-year fixed effects. We further find that local workforce education is more important for firms that are large, less labor-intensive, in non-high-tech industries and located in low education regions. The evidence highlights the importance of having access to well-educated local workforce for corporate innovation. JEL Classification: G30, J24, O31

Suggested Citation

  • Lingwei Li & Linlu Liu & Hai Wu, 2022. "Workforce education and corporate innovation," Australian Journal of Management, Australian School of Business, vol. 47(4), pages 599-629, November.
    • Handle: RePEc:sae:ausman:v:47:y:2022:i:4:p:599-629
    DOI: 10.1177/03128962221077453
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • 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

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