Task allocation and innovation: Revisiting the role of vocational education and training in manufacturing firms

This paper examines the individual innovation contributions of the vocational education and training (VET) workforce compared to university graduates such as scientists and engineers. For this purpose, individual-level data from the German manufacturing sector are used, distinguishing between persons with initial and higher VET qualifications. The empirical results on various input and output indicators show that the VET workforce is not only involved in the implementation phase of the firm's innovation process, but also makes a relevant contribution to the invention phase. Moreover, the empirical evidence suggests a certain division of labour between VET employees and university graduates, which is more likely to occur in large firms due to their higher degree of functional specialisation and task differentiation among employees. There is also some evidence to support the hypothesis that employees with higher VET qualifications, such as master craftsmen or technicians, act as 'boundary spanners' throughout the innovation process, ensuring that effective interactive learning can take place between VET employees from the shop floor and academically trained R&D personnel, so that the benefits of educational workforce diversity can be realised. The paper concludes with implications for policy, management and further research.