IDEAS home Printed from https://ideas.repec.org/p/nsr/niesrd/431.html
   My bibliography  Save this paper

Skills and training for a more innovation-intensive economy

Author

Listed:
  • Geoff Mason

Abstract

There is now intense interest in developing a new industrial policy for the UK which, among other aims, will encourage more UK-based firms to shift towards higher value added activities in a range of industries. In this paper we argue that, if any such industrial policy is to be effective in improving UK economic performance, it needs to stimulate higher levels of innovation by firms. In particular, the policy must encourage a sizeable number of firms who do not currently engage in innovation to start doing so. This in turn implies an increased demand for innovation-related skills and knowledge by UK firms that is unlikely to be met by an industrial training system which is beset by historical weaknesses. Thus the emergence of new industrial policy needs to be complemented by new training policies designed to make skills development and utilisation more cost-effective and to stimulate higher levels of employer demand for innovation-related skills and training. These new policies will need to be balanced in three dimensions: between technical and generic skills, between higher and intermediate skills, and between initial and continuing education and training.

Suggested Citation

  • Geoff Mason, 2014. "Skills and training for a more innovation-intensive economy," National Institute of Economic and Social Research (NIESR) Discussion Papers 431, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:431
    as

    Download full text from publisher

    File URL: https://www.niesr.ac.uk/wp-content/uploads/2021/10/dp431a-4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 695-709, December.
    2. Steven Mcintosh, 2006. "Further Analysis of the Returns to Academic and Vocational Qualifications," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(2), pages 225-251, April.
    3. Dolton, P J & Vignoles, A, 2002. "The Return on Post-compulsory School Mathematics Study," Economica, London School of Economics and Political Science, vol. 69(273), pages 113-141, February.
    4. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    5. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    6. Stephen Machin, 2003. "Wage Inequality Since 1975," Palgrave Macmillan Books, in: Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), The Labour Market Under New Labour, chapter 12, pages 191-200, Palgrave Macmillan.
    7. Phillip Toner, 2011. "Workforce Skills and Innovation: An Overview of Major Themes in the Literature," OECD Education Working Papers 55, OECD Publishing.
    8. Prais,S. J., 1995. "Productivity, Education and Training," Cambridge Books, Cambridge University Press, number 9780521556675.
    9. Dirk Krueger & Krishna B. Kumar, 2004. "Skill-Specific rather than General Education: A Reason for US--Europe Growth Differences?," Journal of Economic Growth, Springer, vol. 9(2), pages 167-207, June.
    10. Blomström, Magnus & Kokko, Ari, 2003. "Human Capital and Inward FDI," EIJS Working Paper Series 167, Stockholm School of Economics, The European Institute of Japanese Studies.
    11. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521546744.
    12. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 203-224, Winter.
    13. Fersterer, Josef & Winter-Ebmer, Rudolf, 2003. "Are Austrian returns to education falling over time?," Labour Economics, Elsevier, vol. 10(1), pages 73-89, February.
    14. Francis Green & Yu Zhu, 2010. "Overqualification, job dissatisfaction, and increasing dispersion in the returns to graduate education," Oxford Economic Papers, Oxford University Press, vol. 62(4), pages 740-763, October.
    15. Alan Felstead & Francis Green & Nick Jewson, 2012. "An analysis of the impact of the 2008–9 recession on the provision of training in the UK," Work, Employment & Society, British Sociological Association, vol. 26(6), pages 968-986, December.
    16. Phillip Toner, 2011. "Workforce Skills and Innovation: An Overview of Major Themes in the Literature," OECD Science, Technology and Industry Working Papers 2011/1, OECD Publishing.
    17. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    18. Nattavudh Powdthavee & Anna Vignoles, 2006. "Using Rate of Return Analyses to Understand Sector Skill Needs," CEE Discussion Papers 0070, Centre for the Economics of Education, LSE.
    19. Geoff Mason & Jean-Paul Beltramo & Jean-Jacques Paul, 2004. "External knowledge sourcing in different national settings: a comparison of electronics establishments in Britain and France," Post-Print halshs-00004978, HAL.
    20. Dave E. Marcotte, 2010. "The Earnings Effect Of Education At Community Colleges," Contemporary Economic Policy, Western Economic Association International, vol. 28(1), pages 36-51, January.
    21. Mason, Geoff & Beltramo, Jean-Paul & Paul, Jean-Jacques, 2004. "External knowledge sourcing in different national settings: a comparison of electronics establishments in Britain and France," Research Policy, Elsevier, vol. 33(1), pages 53-72, January.
    22. Markus Gangl, 2000. "Changing Labour Markets and Early Career Outcomes : Labour Market Entry in Europe over the Past Decade," MZES Working Papers 26, MZES.
    23. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521837682.
    24. Geoff Mason & Karin Wagner, 2005. "Restructuring of automotive supply-chains: the role of workforce skills in Germany and Britain," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 5(4), pages 387-410.
    25. Geoff Mason & Gareth Williams & Sue Cranmer, 2009. "Employability skills initiatives in higher education: what effects do they have on graduate labour market outcomes?," Education Economics, Taylor & Francis Journals, vol. 17(1), pages 1-30.
    26. Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), 2003. "The Labour Market Under New Labour," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59845-4.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cinzia Rienzo, 2017. "Real wages, wage inequality and the regional cost-of-living in the UK," Empirical Economics, Springer, vol. 52(4), pages 1309-1335, June.
    2. Riccardo Leoni, 2013. "Organization of work practices and productivity: an assessment of research on world- class manufacturing," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 17, Edward Elgar Publishing.
    3. Richard Blundell & David A. Green & Wenchao (Michelle) Jin, 2016. "The UK wage premium puzzle: how did a large increase in university graduates leave the education premium unchanged?," IFS Working Papers W16/01, Institute for Fiscal Studies.
    4. Richard Blundell & David A Green & Wenchao Jin, 2022. "The U.K. as a Technological Follower: Higher Education Expansion and the College Wage Premium [Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 142-180.
    5. Jeetendra Khadan, 2018. "Estimating the Effects of Human Capital Constraints on Innovation in the Caribbean," Economies, MDPI, vol. 6(2), pages 1-18, May.
    6. Andrea Filippetti & Frederick Guy, 2016. "Risk-taking, skill diversity, and the quality of human capital: how insurance affects innovation," Papers in Evolutionary Economic Geography (PEEG) 1625, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.
    7. Paul Lewis, 2020. "Developing Technician Skills for Innovative Industries: Theory, Evidence from the UK Life Sciences Industry, and Policy Implications," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 617-643, September.
    8. Holmes, Craig & Mayhew, Ken, 2015. "Have UK Earnings Distributions Polarised?," INET Oxford Working Papers 2015-02, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    9. Paul Ryan & Howard Gospel & Paul Lewis, 2007. "Large Employers and Apprenticeship Training in Britain," British Journal of Industrial Relations, London School of Economics, vol. 45(1), pages 127-153, March.
    10. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    11. Rebecca Riley & Simon Kirby, 2006. "The Returns to General versus Job-Specific Skills: the Role of Information and Communication Technology," National Institute of Economic and Social Research (NIESR) Discussion Papers 274, National Institute of Economic and Social Research.
    12. Bert Minne & Marc van der Steeg & Dinand Webbink, 2008. "Skill gaps in the EU: role for education and training policies," CPB Document 162, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Amanda Chuan & Christian Lyhne Ibsen, 2022. "Skills for the Future? A Life Cycle Perspective on Systems of Vocational Education and Training," ILR Review, Cornell University, ILR School, vol. 75(3), pages 638-664, May.
    14. Ryan, Paul & Gospel, Howard & Lewis, Paul, 2006. "Large employers and apprenticeship training in Britain," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-104, WZB Berlin Social Science Center.
    15. Ryan, Paul & Wagner, Karin & Teuber, Silvia & Backes-Gellner, Uschi, 2011. "Financial aspects of apprenticeship training in Germany, Great Britain an Switzerland / Finanzielle Aspekte der betrieblichen Ausbildung in Deutschland, Großbritannien und der Schweiz," Arbeitspapiere 241, Hans-Böckler-Stiftung, Düsseldorf.
    16. Valeria Cirillo & Lucrezia Fanti & Andrea Mina & Andrea Ricci, 2021. "Digitalizing Firms: Skills, Work Organization and the Adoption of New Enabling Technologies," LEM Papers Series 2021/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    17. Van Reenen, John, 2011. "Does competition raise productivity through improving management quality?," International Journal of Industrial Organization, Elsevier, vol. 29(3), pages 306-316, May.
    18. Filippo Pusterla & Ursula Renold, 2022. "Does ICT affect the demand for vocationally educated workers?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 158(1), pages 1-22, December.
    19. Adriaan Zon & Roberto Antonietti, 2016. "Education and training in a model of endogenous growth with creative wear-and-tear," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(1), pages 35-62, April.
    20. Sanchez-Carrera Edgar J. & Travaglini Giuseppe & Ille Sebastian, 2021. "Macrodynamic Modeling of Innovation Equilibria and Traps," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(2), pages 659-694, June.

    More about this item

    Keywords

    skills; training; innovation; industrial policy;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nsr:niesrd:431. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Library & Information Manager (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.