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Does Initial Vocational Training Foster Innovativeness at the Company Level? Evidence from German Establishment Data

Author

Listed:
  • Eike Matthies

    (HAWK University of Applied Sciences and Arts
    Chair for Economic Policy and SME Research, Georg-August-University of Goettingen)

  • Katarzyna Haverkamp

    (Institute for Small Business Economics at the Georg-August-University Goettingen)

  • Jörg Thomä

    (Institute for Small Business Economics at the Georg-August-University Goettingen)

  • Kilian Bizer

    (Chair for Economic Policy and SME Research, Georg-August-University of Goettingen
    Institute for Small Business Economics at the Georg-August-University Goettingen)

Abstract

The potential role of vocational education and training (VET) for innovation is the subject of a growing number of studies. Quantitative evidence for this relationship, however, remains scarce. Therefore, this paper uses representative German company data to examine the relationship between a firm’s initial VET activity and its innovation output. The results based on linear probability models and entropy balancing indicate that the direct link between initial VET and firm-level innovation is more ambiguous than often postulated. For the total population of German companies, a positive correlation with initial VET is only found for incremental product and process innovations. Furthermore, a significant link between initial VET and innovation is only found in the group of microenterprises with less than 10 employees. From this, we conclude that participation in the VET system primarily promotes the innovative capacity of very small training companies through the diffusion of new technologies and knowledge. The paper concludes with implications for policy and research.

Suggested Citation

  • Eike Matthies & Katarzyna Haverkamp & Jörg Thomä & Kilian Bizer, 2024. "Does Initial Vocational Training Foster Innovativeness at the Company Level? Evidence from German Establishment Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 17048-17076, December.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01756-9
    DOI: 10.1007/s13132-024-01756-9
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