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R&D, worker training and innovation: firm-level evidence

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  • Xulia González
  • Daniel Miles-Touya
  • Consuelo Pazó

Abstract

Firms that invest in R&D and also in worker training are expected to be successful innovators; yet, the extent to which these investments are mutually reinforcing has not been established. This paper addresses that question by analysing the decision to innovate and the number of innovations introduced. Our findings, which are based on a sample of Spanish manufacturing firms, confirm that R&D is more effective when firms also invest in worker training. Moreover, for some smaller firms, investing in workers’ skills (via training programs) boosts innovation even in absence of R&D. Meanwhile, on-the-job training in large firms might serve mainly to reinforce the effects of R&D. Regarding the number of innovations, our result signals that a higher absorptive capacity via higher ability of qualified workers (through schooling or training) leads to improved innovation performance.

Suggested Citation

  • Xulia González & Daniel Miles-Touya & Consuelo Pazó, 2016. "R&D, worker training and innovation: firm-level evidence," Industry and Innovation, Taylor & Francis Journals, vol. 23(8), pages 694-712, November.
  • Handle: RePEc:taf:indinn:v:23:y:2016:i:8:p:694-712
    DOI: 10.1080/13662716.2016.1206463
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    References listed on IDEAS

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    Cited by:

    1. Preeya Mohan & Eric Strobl & Patrick Watson, 2018. "In-firm training, innovation and productivity: the case of Caribbean Small Island Developing States," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 30(9-10), pages 987-1011, October.
    2. Guerrazzi, Marco, 2014. "Workforce ageing and the training propensity of Italian firms: cross-sectional evidence from the INDACO survey," MPRA Paper 56826, University Library of Munich, Germany.
    3. Dostie, Benoit, 2014. "Innovation, Productivity, and Training," IZA Discussion Papers 8506, Institute of Labor Economics (IZA).
    4. repec:gam:jsusta:v:10:y:2018:i:11:p:4208-:d:182896 is not listed on IDEAS

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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