IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/8216.html
   My bibliography  Save this paper

In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States

Author

Listed:
  • Mohan, Preeya
  • Strobl, Eric
  • Watson, Patrick

Abstract

In-firm training is a crucial innovative activity in modern knowledge-based economies which face increasing global competition and rapidly changing technology. Nevertheless, there are few studies which look at in-firm training in the Caribbean. This study uses the World Bank Enterprise Survey (WBES) 2010 and Compete Caribbean's Productivity Technology Innovation Survey (PROTEqIN) 2014 to provide empirical evidence on in-firm training in the region. The results suggest that there is a relatively low incidence of training in the region, although there are significant differences across countries and this may be because of heterogeneities in public support and barriers to in-firm training. Also, various firm characteristics affect in-firm training, including size, ownership, whether the firm exports, whether the firm is part of a larger organization, innovative activity and workforce structure and educational level. Lastly, the findings suggest that in-firm training in the region may play a relatively small role and may not even matter for innovation and productivity.

Suggested Citation

  • Mohan, Preeya & Strobl, Eric & Watson, Patrick, 2017. "In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States," IDB Publications (Working Papers) 8216, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:8216
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/In-Firm-Training-Innovation-and-Productivity-The-Case-of-Caribbean-Small-Island-Developing-States.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 79-119.
    2. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    3. Benoit Dostie, 2013. "Estimating the Returns to Firm-Sponsored On-the-Job and Classroom Training," Journal of Human Capital, University of Chicago Press, vol. 7(2), pages 161-189.
    4. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1129-1155, Elsevier.
    5. Thomas Zwick, 2005. "Continuing Vocational Training Forms and Establishment Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 6(2), pages 155-184, May.
    6. Mark Cassidy & Holger Görg & Eric Strobl, 2005. "Knowledge Accumulation, And Productivity: Evidence From Plant‐Level Data For Ireland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 344-358, July.
    7. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    8. Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(2), pages 243-263, March.
    9. repec:lic:licosd:24409 is not listed on IDEAS
    10. René Böheim & Nicole Schneeweis & Florian Wakolbinger, 2009. "Employer provided training in Austria: Productivity, wages and wage inequality," NRN working papers 2009-27, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    11. Busso, Matías & Bassi, Marina & Urzúa, Sergio & Vargas, Jaime, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 427, November.
    12. Freeman, Chris, 1994. "The Economics of Technical Change," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(5), pages 463-514, October.
    13. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 483-498, Winter.
    14. Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, August.
    15. Xulia González & Daniel Miles-Touya & Consuelo Pazó, 2016. "R&D, worker training and innovation: firm-level evidence," Industry and Innovation, Taylor & Francis Journals, vol. 23(8), pages 694-712, November.
    16. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
    17. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    18. Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2009. "Training and Innovation," Journal of Human Capital, University of Chicago Press, vol. 3(4), pages 323-353.
    19. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    20. Andreas Blom & Cynthia Hobbs, 2008. "School and Work in the Eastern Caribbean : Does the Education System Adequately Prepare Youth for the Global Economy?," World Bank Publications - Books, The World Bank Group, number 6375.
    21. Wim Groot, 1999. "Productivity effects of enterprise-related training," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 369-371.
    22. Jozef Konings & Stijn Vanormelingen, 2015. "The Impact of Training on Productivity and Wages: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 485-497, May.
    23. Petri Rouvinen, 2002. "R&D—Productivity Dynamics: Causality, Lags, and ‘Dry Holes’," Journal of Applied Economics, Taylor & Francis Journals, vol. 5(1), pages 123-156, May.
    24. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
    25. Eberhard, Juan & Moraga, Gabriel & Nun, Eleonora & Madariaga, Aldo, 2017. "The On-the-Job Training Decision in Latin America," IDB Publications (Working Papers) 8661, Inter-American Development Bank.
    26. Ballot, Gerard & Taymaz, Erol, 2001. "Training policies and economic growth in an evolutionary world," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 311-329, September.
    27. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    28. John Bishop, 1994. "The Impact of Previous Training on Productivity and Wages," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 161-200, National Bureau of Economic Research, Inc.
    29. repec:lic:licosd:19708 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.
    2. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    3. Yanika Gauci & Simon Grima & Yannis Thalassinos & Inna Romanova, 2021. "Training in the Financial Industry: An Effectiveness Study on a Small EU Island State," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 1258-1287.
    4. Qi Jun & Hasan Dinçer & Serhat Yüksel, 2021. "Stochastic hybrid decision‐making based on interval type 2 fuzzy sets for measuring the innovation capacities of financial institutions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 573-593, January.
    5. Jeetendra Khadan, 2018. "Estimating the Effects of Human Capital Constraints on Innovation in the Caribbean," Economies, MDPI, vol. 6(2), pages 1-18, May.
    6. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Preeya Mohan & Eric Strobl & Patrick Watson, 2017. "In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States," IDB Publications (Working Papers) 98136, Inter-American Development Bank.
    2. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    3. Aboal D. & Tacsir E., 2015. "Innovation and productivity in services and manufacturing : The role of ICT investment," MERIT Working Papers 2015-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Wadho, Waqar & Chaudhry, Azam, 2020. "Innovation Strategies and Productivity Growth in Developing Countries: Evidence from Pakistan," GLO Discussion Paper Series 466, Global Labor Organization (GLO).
    5. Preeya Mohan & Eric Strobl & Patrick Watson, 2014. "Innovative Activity in the Caribbean: Drivers, Benefits, and Obstacles," Working Papers 2014-595, Department of Research, Ipag Business School.
    6. Giulio Pedrini, 2017. "Law and economics of training: a taxonomy of the main legal and institutional tools addressing suboptimal investments in human capital development," European Journal of Law and Economics, Springer, vol. 43(1), pages 83-105, February.
    7. Dostie, Benoit, 2014. "Innovation, Productivity, and Training," IZA Discussion Papers 8506, Institute of Labor Economics (IZA).
    8. Andrés Barge-Gil & Alberto López, 2015. "R versus D: estimating the differentiated effect of research and development on innovation results," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 93-129.
    9. Xulia González & Daniel Miles-Touya & Consuelo Pazó, 2016. "R&D, worker training and innovation: firm-level evidence," Industry and Innovation, Taylor & Francis Journals, vol. 23(8), pages 694-712, November.
    10. Pedrini, Giulio & Cappiello, Giuseppe, 2022. "The impact of training on labour productivity in the European utilities sector: An empirical analysis," Utilities Policy, Elsevier, vol. 74(C).
    11. Eric J. Bartelsman & Martin Falk & Eva Hagsten & Michael Polder, 2019. "Productivity, technological innovations and broadband connectivity: firm-level evidence for ten European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 25-48, March.
    12. Max Nathan & Anna Rosso, 2017. "Innovative events," Development Working Papers 429, Centro Studi Luca d'Agliano, University of Milano, revised 08 Apr 2019.
    13. Messaoud Zouikri & Mounir Amdaoud, 2018. "Compétences externes et innovation: le cas des firmes de l'industrie manufacturière algérienne," EconomiX Working Papers 2018-37, University of Paris Nanterre, EconomiX.
    14. Benoit Dostie, 2020. "Who benefits from firm-sponsored training?," IZA World of Labor, Institute of Labor Economics (IZA), pages 145-145, July.
    15. Wadho, Waqar & Chaudhry, Azam, 2022. "Innovation strategies and productivity growth in developing countries: Firm-level evidence from Pakistani manufacturers," Journal of Asian Economics, Elsevier, vol. 81(C).
    16. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    17. Grazzi, Matteo & Pietrobelli, Carlo & Szirmai, Adam, 2015. "The performance of firms in Latin America and the Caribbean: Microeconomic factors and the role of innovation," MERIT Working Papers 2015-041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. de Miguel, Carlos & Pazó, Consuelo, 2017. "Environmental protection, innovation and price-setting behavior in Spanish manufacturing firms," Energy Economics, Elsevier, vol. 68(S1), pages 116-124.
    19. Roberto Álvarez, 2016. "The Impact of R&D and ICT Investment on Innovation and Productivity in Chilean Firms," Working Papers wp428, University of Chile, Department of Economics.
    20. Diego Aboal & Ezequiel Tacsir, 2018. "Innovation and productivity in services and manufacturing: the role of ICT," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 221-241.

    More about this item

    Keywords

    on-the-job training; wages; workforce;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:8216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.