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Human Capital Development and Innovation: The Case of Training in Small and Medium Sized Firms

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  • Johnson, Joanne
  • Baldwin, John R.

Abstract

This study examines the characteristics of small and medium-sized firms that perform training. It uses data taken from a recent Statistics Canada survey that permit firms' training decisions to be analyzed within the broader context of their many activities and strategies. The study finds strong evidence for the hypothesis that human capital development facilitated by training is complementary to innovation and technological change. Training incidence is found to be closely related to the importance that a firm gives to research and development, the use of new technologies, and numerous other strategies that are related to innovation. Training is also greater where a firm emphasizes quality and a comprehensive human-resource strategy. The results point to the inherent complementarity of technology and human resources policy.

Suggested Citation

  • Johnson, Joanne & Baldwin, John R., 1995. "Human Capital Development and Innovation: The Case of Training in Small and Medium Sized Firms," Analytical Studies Branch Research Paper Series 1995074e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:1995074e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M1995074
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    References listed on IDEAS

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    1. Hashimoto, Masanori, 1979. "Bonus Payments, on-the-Job Training, and Lifetime Employment in Japan," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1086-1104, October.
    2. Jacob Mincer, 1989. "Human Capital Responses to Technological Change in the Labor Market," NBER Working Papers 3207, National Bureau of Economic Research, Inc.
    3. Wayne Simpson, 1984. "An Econometric Analysis of Industrial Training in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 435-451.
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    Cited by:

    1. Gilberto Antonelli & Roberto Antonietti & Giovanni Guidetti, 2010. "Organizational Change, Skill Formation, Human Capital Measurement: Evidence From Italian Manufacturing Firms," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 206-247, April.
    2. Daria Ciriaci, 2011. "Intangible resources: the relevance of training for European firms innovative performance," JRC Working Papers on Corporate R&D and Innovation 2011-06, Joint Research Centre.
    3. Danny García, 2007. "Innovation and Growth: A Survey of the Literature and a Case Study for Latin America," Revista Ecos de Economía, Universidad EAFIT, October.
    4. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
    5. Unterschultz, James R. & Lerohl, Mel L. & Peng, Yanning & Gurung, Rajendra Kumar, 1998. "A Nutraceutical Industry: Policy Implications for Future Directions," Project Report Series 24051, University of Alberta, Department of Resource Economics and Environmental Sociology.
    6. Johnson, Joanne & Baldwin, John R. & Gray, Tara, 1995. "Technology Use, Training and Plant-specific Knowledge in Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995086e, Statistics Canada, Analytical Studies Branch.
    7. Sabourin, David, 2001. "Skill Shortages and Advanced Technology Adoption," Analytical Studies Branch Research Paper Series 2001175e, Statistics Canada, Analytical Studies Branch.
    8. John Britton, 2002. "Regional Implications of North American Integration: A Canadian Perspective on High Technology Manufacturing," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 359-374.
    9. Isabel Diéguez & Ana Cantorna & Ana Canto, 2005. "Organizational Training In Manufacturing Firms And Advanced Manufacturing Technologies," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 57-70.
    10. Sabourin, David, 2001. "Penuries de main-d'oeuvre qualifiee et adoption des technologies de pointe," Direction des études analytiques : documents de recherche 2001175f, Statistics Canada, Direction des études analytiques.
    11. Johnson, Joanne & Baldwin, John R. & Gray, Tara, 1996. "Technology-induced Wage Premia in Canadian Manufacturing Plants During the 1980s," Analytical Studies Branch Research Paper Series 1996092e, Statistics Canada, Analytical Studies Branch.
    12. Richard Shearmur, 2012. "Not Being There: Why Local Innovation is Not (Always) Related to Local Factors," Chapters, in: Knut Ingar Westeren (ed.), Foundations of the Knowledge Economy, chapter 7, Edward Elgar Publishing.
    13. Dostie, Benoit, 2014. "Innovation, Productivity, and Training," IZA Discussion Papers 8506, Institute of Labor Economics (IZA).
    14. Maksim Belitski & Rosa Caiazza & Yuliya Rodionova, 2020. "Investment in training and skills for innovation in entrepreneurial start-ups and incumbents: evidence from the United Kingdom," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 617-640, June.

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