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Does Qualification Drive Innovation? A Microeconometric Analysis Using Linked-employer-employee Data

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  • Brandenburg, Bianca
  • Günther, Jutta
  • Schneider, Lutz

Abstract

Degree-level science and engineering skills as well as management and leadership skills are often referred to as a source of innovative activities within companies. Broken down by sectoral innovation patterns, this article examines the role of formal education and actual occupation for product innovation performance in manufacturing firms within a probit model. It uses unique micro data for Germany (LIAB) that contain detailed information about innovative activities and the qualification of employees. We find significant differences of the human capital endowment between sectors differentiated according to the Pavitt classification. Sectors with a high share of highly skilled employees engage in product innovation above average (specialized suppliers and science based industries). According to our hitherto estimation results, within these sectors the share of highly skilled employees does not, however, substantially increase the probability to be an innovative firm.

Suggested Citation

  • Brandenburg, Bianca & Günther, Jutta & Schneider, Lutz, 2007. "Does Qualification Drive Innovation? A Microeconometric Analysis Using Linked-employer-employee Data," IWH Discussion Papers 10/2007, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-10-07
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    Cited by:

    1. Dettmann, Eva & Fackler, Daniel & Müller, Steffen & Neuschäffer, Georg & Slavtchev, Viktor & Leber, Ute & Schwengler, Barbara, 2020. "Innovationen in Deutschland - Wie lassen sich Unterschiede in den Betrieben erklären? : Ergebnisse aus dem IAB-Betriebspanel 2019," IAB-Forschungsbericht 202012, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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