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Training and Innovation

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  • Stefan Bauernschuster
  • Oliver Falck
  • Stephan Heblich

Abstract

Research analyzing the importance of human capital for innovation usually focuses on secondary and tertiary education. This paper takes a different perspective by focusing on in-firm training. We argue that continuous training guarantees access to leading-edge knowledge and thus increases a firm's propensity to innovate. Using German establishment-level data, we show a strong association between lagged continuous training and innovation. Applying instrumental variable methods, we cautiously argue that the association between training and innovation is indeed a causal effect. In the quest for a relevant and valid instrument, we exploit legal regulations of the German Works Constitution Act. (c) 2009 by The University of Chicago. All rights reserved.

Suggested Citation

  • Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2009. "Training and Innovation," Journal of Human Capital, University of Chicago Press, vol. 3(4), pages 323-353.
  • Handle: RePEc:ucp:jhucap:v:3:y:2009:i:4:p:323-353
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    Cited by:

    1. Popov, Alexander, 2014. "Credit constraints and investment in human capital: Training evidence from transition economies," Journal of Financial Intermediation, Elsevier, vol. 23(1), pages 76-100.
    2. Benoit Dostie, 2015. "Who benefits from firm-sponsored training?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 145-145, April.
    3. Dorner, Matthias & Fryges, Helmut & Schopen, Kathrin, 2015. "Wages in high-tech start-ups - do academic spin-offs pay a wage premium?," IAB Discussion Paper 201517, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Peukert, Christian, 2011. "External technology supply and client-side innovation," ZEW Discussion Papers 11-082, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Preeya Mohan & Eric Strobl & Patrick Watson, 2017. "In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States," IDB Publications (Working Papers) 98136, Inter-American Development Bank.
    6. Robert Lerman, 2014. "Do firms benefit from apprenticeship investments?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-55, May.
    7. Michael Fritsch & Alina Sorgner, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," SOEPpapers on Multidisciplinary Panel Data Research 539, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Preeya Mohan & Eric Strobl & Patrick Watson, 2017. "In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States," IDB Publications (Working Papers) 8216, Inter-American Development Bank.
    9. Grégoire Cauchie & Nicolas Gérard Vaillant, 2016. "New Firm Survival: Isolating the Role of Founders’ Human Capital in Accounting for Firm Longevity," Journal of Human Capital, University of Chicago Press, vol. 10(2), pages 186-211.
    10. Uwe Cantner & Wolfgang Gerstlberger & Ipsita Roy, 2014. "Works Councils, Training Activities and Innovation: A Study of German Firms," Jena Economic Research Papers 2014-006, Friedrich-Schiller-University Jena.
    11. Dostie, Benoit, 2014. "Innovation, Productivity, and Training," IZA Discussion Papers 8506, Institute for the Study of Labor (IZA).

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