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The Impact of Training on Innovation

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  • Benoit Dostie

Abstract

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. The author tests this hypothesis using detailed data on firms’ human capital investments and innovation performance from the Canadian Workplace and Employee Survey, 1999–2006. The regression results, including 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. Results from an event history analysis show, however, that this impact fades over time.

Suggested Citation

  • Benoit Dostie, 2018. "The Impact of Training on Innovation," ILR Review, Cornell University, ILR School, vol. 71(1), pages 64-87, January.
    • Handle: RePEc:sae:ilrrev:v:71:y:2018:i:1:p:64-87
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    Citations

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    Cited by:

    1. Helena Lenihan & Kevin Mulligan & Justin Doran & Christian Rammer & Olubunmi Ipinnaiye, 2024. "R&D grants and R&D tax credits to foreign-owned subsidiaries: Does supporting multinational enterprises’ R&D pay off in terms of firm performance improvements for the host economy?," The Journal of Technology Transfer, Springer, vol. 49(2), pages 740-781, April.
    2. Elena-Madalina Vatamanescu & Wioletta Wereda & Jacek Woźniak, 2020. "Communication And Knowledge Management In Innovative Enterprises – Literature Review Perspective," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 2, pages 41-55.
    3. Samuel Muehlemann & Gerard Pfann & Harald Pfeifer, 2024. "Apprenticeship Input Demand Cyclicality of R&D and non-R&D Firms," Economics of Education Working Paper Series 0223, University of Zurich, Department of Business Administration (IBW).
    4. Benoit Dostie & Mohsen Javdani, 2020. "Immigrants and Workplace Training: Evidence from Canadian Linked Employer–Employee Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 275-315, April.
    5. José Manuel Santos‐Jaén & Antonia Madrid‐Guijarro & Domingo García‐Pérez‐de‐Lema, 2021. "The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1200-1215, July.
    6. Alan Felstead & Duncan Gallie & Francis Green & Golo Henseke, 2020. "Getting the Measure of Employee‐Driven Innovation and Its Workplace Correlates," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 904-935, December.
    7. Martins, Pedro S., 2021. "Employee training and firm performance: Evidence from ESF grant applications," Labour Economics, Elsevier, vol. 72(C).
    8. Nicola Del Sarto & Giulio Ferrigno & Vinit Parida & Alberto Minin, 2023. "Do start-ups benefit from coworking spaces? An empirical analysis of accelerators’ programs," Review of Managerial Science, Springer, vol. 17(7), pages 2471-2502, October.
    9. Megersa Debela Daksa & Molla Alemayehu Yismaw & Sisay Diriba Lemessa & Shemelis Kebede Hundie, 2018. "Enterprise innovation in developing countries: an evidence from Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-19, December.
    10. Koray Sayili, 2020. "Retaining skilled employees: A human capital model with innovation and entrepreneurship," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 911-923, September.
    11. Ben Kajwang, 2022. "Effects of training and development practices on performance of insurance sector in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 140-148, June.
    12. Antonella Biscione & Chiara Burlina & Raul Caruso & Annunziata de Felice, 2021. "Innovation in Transition countries: the role of training," Working Papers 1013, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    13. Francis Boadu & Yu Xie & Yi-Fei Du & Elizabeth Dwomo-Fokuo, 2018. "MNEs Subsidiary Training and Development and Firm Innovative Performance: The Moderating Effects of Tacit and Explicit Knowledge Received from Headquarters," Sustainability, MDPI, vol. 10(11), pages 1-25, November.

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