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Training and innovation

Stefan Bauernschuster, Oliver Falck () and Stephan Heblich ()

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Research analyzing the importance of human capital for innovation usually focuses on secondary and tertiary education. This paper takes a different perspective by focusing on in-firm training. We argue that continuous training guarantees access to leading-edge knowledge and thus increases a firm’s propensity to innovate. Using German establishment-level data, we show a strong association between lagged continuous training and innovation. Applying instrumental variable methods, we cautiously argue that the association between training and innovation is indeed a causal effect. In the quest for a relevant and valid instrument, we exploit legal regulations of the German Works Constitution Act.

Date: 2009
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Published in Journal of Human Capital 4 3(2009): pp. 323-353

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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20136

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