Synergy Effects of Innovation Capital and Human Capital in Taiwan’s Semiconductor Industry
30 Pages Posted: 11 Jul 2010
Date Written: July 11, 2010
Successful innovation requires not only creativity (innovation capital), but also the ability to do research and development (human capital). This study uses Taiwan's semiconductor industry as the research object to explore the synergy effects of innovation capital and human capital on financial performance and firm value. The results show that high-quality labor plays an important role in upgrading financial performance and creating firm value. In addition, the interaction of innovation output and human capital has a deferred and significant positive effect on both. Finally, the influence of innovation output quality is greater than that of innovation output quantity, which means that companies should endeavor to improve the quality of innovation output to sustain their competitive advantages.
Keywords: Innovation Capital, Human Capital, Intellectual Capital, Financial Performance, Firm Value
JEL Classification: M41
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