Education, Training and Innovation in Transition Economies: Is there a Link?

25 Pages Posted: 14 Feb 2011 Last revised: 15 Jun 2014

Date Written: January 16, 2011

Abstract

The aim of this paper is to establish the effect of on-the-job-training and university education on the firm’s innovation decision in transition economies of Eastern Europe and the Former Soviet Union. The authors use the 2002 and 2005 waves of the Business Environment and Enterprise Performance Surveys. Their findings, based on a mixed discrete-continuous model with endogenous variables in the firm’s innovation equation, suggest that further investments in education will not lead to necessary improvements in the firm’s demonstrated ability to innovate. This is in contrast to on-the-job-training, which they show increases a firm’s ability to innovate in countries with transition economies.

Suggested Citation

Nazarov, Zafar and Akhmedjonov, Alisher, Education, Training and Innovation in Transition Economies: Is there a Link? (January 16, 2011). RAND Working Paper Series WR- 776-1, Available at SSRN: https://ssrn.com/abstract=1659907 or http://dx.doi.org/10.2139/ssrn.1659907

Zafar Nazarov (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

Alisher Akhmedjonov

Zirve University ( email )

Turkey

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