Task allocation and innovation: Revisiting the role of vocational education and training in manufacturing firms

Eike Matthies and Jörg Thomä

No 47/2025, ifh Working Papers from Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh)

Abstract: This paper examines the role of vocational education and training (VET) in innovation by comparing the VET workforce's participation in innovation with that of university graduates, such as scientists and engineers. Using individual-level data from the German manufacturing sector, we distinguish between initial VET qualifications (acquired through dual apprenticeships) and higher VET qualifications (such as master craftsmen or technicians). The results confirm that university graduates dominate continuous research and development (R&D) activities. However, VET-qualified employees - especially those with higher VET qualifications - play a substantial role in both the invention and implementation phases of the firm's innovation process. Initial VET graduates are particularly active in implementation, notably in introducing new machinery, equipment, and technologies. Higher VET graduates are crucial in bridging the gap between R&D and the shop floor, facilitating knowledge transfer between different qualification groups. These participation patterns vary with firm size, with large firms showing clearer task allocation and specialisation. Overall, the paper's findings highlight that innovation in manufacturing relies on the complementary strengths of vocational and academic qualifications, with implications for policy, management, and future research.

Keywords: Innovation; Vocational education and training (VET); Diversity; Skills; Firm size (search for similar items in EconPapers)
JEL-codes: I2 J24 M53 O15 O30 O31 (search for similar items in EconPapers)
Date: 2025, Revised 2025
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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