R&D, Worker Training, and Innovation: Firm-level evidence

Résumé

This paper analyzes the effects of R&D and on-the-job training on innovation performance in a sample of Spanish manufacturing firms. The role of formal R&D activities has been intensively investigated, but little reserch has been carried out on the role of human capital, as measured by firm-sponsored worker training, and even less has addressed the interaction between both activities. We analyze the complementarity between the effects of R&D and training on firm innovation success while distinguishing between large and small firms. Our findings suggest that R&D is a key factor in explaining firm innovation performance and that worker training investment also has a significant effect albeit one of less magnitude. The results confirm a complementary relationship: on-the-job training reinforces the effect of R&D on innovation performance.