Churning of R&D Personnel and Innovation

33 Pages Posted: 9 Jun 2010

See all articles by Kathrin Mueller

Kathrin Mueller

ZEW – Leibniz Centre for European Economic Research

Bettina Peters

Center for European Economic Research (ZEW)

Date Written: 2010

Abstract

This paper explores the role of R&D worker mobility on innovation performance. As one main novelty, we employ churning as a measure for worker mobility. Churning depicts the number of workers which are replaced by new ones. It is a very informative indicator since a firm may be exposed to simultaneous leave and inflow of R&D workers even if the size of R&D employment remains unchanged. Hence, we can separate the effect of replacement from net change in R&D workforce. Our results from estimating various knowledge production functions suggest an inverse u-shaped relationship. The exchange of R&D personnel fosters innovation through inter-firm knowledge spillovers and improved job-match quality up to certain threshold. The point when costs of churning exceed the benefits is reached faster if the R&D knowledge is non-duplicative.

Keywords: Innovation, Churning, Mobility

JEL Classification: O32, O33, C35

Suggested Citation

Mueller, Kathrin and Peters, Bettina, Churning of R&D Personnel and Innovation (2010). ZEW - Centre for European Economic Research Discussion Paper No. 10-032, Available at SSRN: https://ssrn.com/abstract=1622715 or http://dx.doi.org/10.2139/ssrn.1622715

Kathrin Mueller (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Bettina Peters

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany
+496211235174 (Phone)
+496211235170 (Fax)

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