Arbeitspapier

Innovation, Productivity, and Training

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 8506

Classification
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Firm Organization and Market Structure
Personnel Economics: Training
Management of Technological Innovation and R&D
Subject
innovation
firm-sponsored training
productivity
linked employer-employee data

Event
Geistige Schöpfung
(who)
Dostie, Benoît
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2014

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Dostie, Benoît
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2014

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