Innovation, Productivity, and Training

Benoit Dostie

No 8506, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The firm's stock of human capital is an important determinant of its ability to innovate. As such, any increase in this stock through firm-sponsored training might lead to more innovation. We test this hypothesis using detailed data on firms' human capital investments and innovation performance, the Canadian longitudinal linked employer-employee data from 1999-2006. Our results, with workplace fixed-effects and allowing for time-varying productivity shocks, demonstrate that more training leads to more product and process innovation, with on-the-job training playing a role that is as important as classroom training. We then demonstrate that on-the-job training has a positive impact on firm-level productivity through improved process innovation.

Keywords: productivity; firm-sponsored training; innovation; linked employer-employee data (search for similar items in EconPapers)
JEL-codes: J24 L22 M53 O32 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2014-09
New Economics Papers: this item is included in nep-cse, nep-eff, nep-hrm, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Forthcoming - published as 'The Impact of Training on Innovation' in: ILR Review, 2018, 71(1): 64-87.

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