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Exploring the Sources of Skill-Biased Technical Change: A Firm Performance Perspective

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  • Leiponen, Aija

Abstract

The literature on skill-biased technical change has examined the role of skills in the adoption of new technology. Here the focus is on the creation of new technology, that is, innovation. Low skill firms are hypothesized to benefit less from innovation activities, particularly collaborative research and development (R&D). In other words, skills and innovation are complementary. Complementarities associated with innovation may generate persistent differences in firm behavior and performance. Results from a panel of manufacturing firms indicate that technical skills reinforce the profitability effects of innovation and R&D collaboration. Skills, collaboration, and innovation form a system of interdependent activities.

Suggested Citation

  • Leiponen, Aija, 2002. "Exploring the Sources of Skill-Biased Technical Change: A Firm Performance Perspective," Working Papers 127282, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:127282
    DOI: 10.22004/ag.econ.127282
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    Cited by:

    1. Fibla Gasparín, Ma. Teresa, 2010. "Productivity in southern European small firms: When and how work organization complements process innovation," Working Papers 2072/179600, Universitat Rovira i Virgili, Department of Economics.
    2. Aija Leiponen, 2005. "Core complementarities of the corporation: organization of an innovating firm," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(6), pages 351-365.

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