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Training and innovation

Author

Listed:
  • Bauernschuster, Stefan
  • Falck, Oliver
  • Heblich, Stephan

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.

Suggested Citation

  • Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan, 2009. "Training and innovation," Munich Reprints in Economics 20136, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:20136
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    References listed on IDEAS

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    Cited by:

    1. Dorner, Matthias & Fryges, Helmut & Schopen, Kathrin, 2017. "Wages in high-tech start-ups – Do academic spin-offs pay a wage premium?," Research Policy, Elsevier, vol. 46(1), pages 1-18.
    2. Robert Lerman, 2014. "Do firms benefit from apprenticeship investments?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-55, May.
    3. 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.
    4. 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.
    5. Sorgner, Alina & Fritsch, Michael, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79768, Verein für Socialpolitik / German Economic Association.
    6. 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.
    7. repec:bla:ausecr:v:52:y:2019:i:1:p:41-60 is not listed on IDEAS
    8. 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.
    9. 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.
    10. Dostie, Benoit, 2014. "Innovation, Productivity, and Training," IZA Discussion Papers 8506, Institute of Labor Economics (IZA).
    11. Benoit Dostie, 2015. "Who benefits from firm-sponsored training?," IZA World of Labor, Institute of Labor Economics (IZA), pages 145-145, April.
    12. Peukert, Christian, 2011. "External technology supply and client-side innovation," ZEW Discussion Papers 11-082, ZEW - Leibniz Centre for European Economic Research.
    13. repec:gam:jsusta:v:10:y:2018:i:11:p:4208-:d:182896 is not listed on IDEAS

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