The Impact of Continuous Training on a Firm's Innovations

35 Pages Posted: 25 Mar 2008

See all articles by Stefan Bauernschuster

Stefan Bauernschuster

University of Passau - Business Administration and Economics; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute; IZA Institute of Labor Economics

Oliver Falck

CESifo (Center for Economic Studies and Ifo Institute) - Department Human Capital and Innovation

Stephan Heblich

University of Stirling - Department of Economics

Date Written: March 2008

Abstract

Keeping up with rapid technological change necessitates constant innovation. Successful innovation depends on both incumbent workers' knowledge, based on experience, and knowledge about the latest technologies, along with the skills needed to implement them. Both of these knowledge-based elements of innovation can be attained through moderate labor force turnover in combination with continuous training. Based on German micro data, we find empirical evidence in support of training leading to innovation within a multivariate regression framework. However, when instrumenting training by the existence of a union's contract or a works council this impact disappears.

Keywords: innovation, training, unions, works councils

JEL Classification: J24, L11, O31

Suggested Citation

Bauernschuster, Stefan and Bauernschuster, Stefan and Falck, Oliver and Heblich, Stephan, The Impact of Continuous Training on a Firm's Innovations (March 2008). CESifo Working Paper Series No. 2258, Available at SSRN: https://ssrn.com/abstract=1113003 or http://dx.doi.org/10.2139/ssrn.1113003

Stefan Bauernschuster

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 81679
Germany

University of Passau - Business Administration and Economics ( email )

University of Passau
Innstrasse 27
D-94030 Passau
Germany

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Oliver Falck (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Department Human Capital and Innovation ( email )

Poschingerstr. 5
Munich, 81679
Germany

Stephan Heblich

University of Stirling - Department of Economics ( email )

Stirling, Scotland FK9 4LA
United Kingdom

HOME PAGE: http://www.management.stir.ac.uk/people/economics/academic-staff/dr-stephan-heblich

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