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Churning of R&D personnel and innovation

  • Müller, Kathrin
  • Peters, Bettina

This paper explores the role of R&D worker mobility on innovation performance. As one main novelty, we employ churning as a measure for worker mobility. Churning depicts the number of workers which are replaced by new ones. It is a very informative indicator since a firm may be exposed to simultaneous leave and inflow of R&D workers even if the size of R&D employment remains unchanged. Hence, we can separate the effect of replacement from net change in R&D workforce. Our results from estimating various knowledge production functions suggest an inverse u-shaped relationship. The exchange of R&D personnel fosters innovation through inter-firm knowledge spillovers and improved job-match quality up to certain threshold. The point when costs of churning exceed the benefits is reached faster if the R&D knowledge is non-duplicative.

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File URL: http://econstor.eu/bitstream/10419/36386/1/627401775.pdf
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-032.

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Date of creation: 2010
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Handle: RePEc:zbw:zewdip:10032
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  1. Teece, David J., 1992. "Competition, cooperation, and innovation : Organizational arrangements for regimes of rapid technological progress," Journal of Economic Behavior & Organization, Elsevier, vol. 18(1), pages 1-25, June.
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