Evidence on the Impact of Education on Innovation and Productivity

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

This paper investigates the importance of the educational mix of employees at the firm level for the probability of firms being involved in innovation activities. We distinguish between four types of innovation: product, process, organisational, and marketing innovation. Moreover, we consider three different types of education for employees with at least 16 years of schooling: technical sciences, social sciences, and humanities. Furthermore, we examine the influence of these different innovation activities on firm productivity. Using a rotating panel data sample of Danish firms, we find that different types of innovations are related to distinct educational types. Moreover, we find that firms that adopt product and marketing innovation are more productive than firms that adopt product innovation but not marketing innovation and firms that adopt marketing innovation but not product innovation. In addition, firms that adopt organisational and process innovation demonstrate greater productivity levels than forms that adopt organisational innovation but not process innovation that again demonstrate greater productivity than firms that do not adopt process innovation but not organisational innovation. Finally, we establish that product and marketing innovation as well as organisational and process innovation are complementary inputs using formal tests for supermodularity. Complementarity can be rejected for all other pairs of innovation types.
Original languageEnglish
Publication date2013
Number of pages30
Publication statusPublished - 2013
EventEuropean Economic Association & Econometric Society 2013 Parallel Meetings - Gothenburg, Sweden
Duration: 26 Aug 201330 Aug 2013
http://www.eea-esem.com/eea-esem/2013/

Conference

ConferenceEuropean Economic Association & Econometric Society 2013 Parallel Meetings
CountrySweden
CityGothenburg
Period26/08/201330/08/2013
Internet address

Cite this

Junge, M., Severgnini, B., & Sørensen, A. (2013). Evidence on the Impact of Education on Innovation and Productivity. Paper presented at European Economic Association & Econometric Society 2013 Parallel Meetings, Gothenburg, Sweden.
Junge, Martin ; Severgnini, Battista ; Sørensen, Anders. / Evidence on the Impact of Education on Innovation and Productivity. Paper presented at European Economic Association & Econometric Society 2013 Parallel Meetings, Gothenburg, Sweden.30 p.
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title = "Evidence on the Impact of Education on Innovation and Productivity",
abstract = "This paper investigates the importance of the educational mix of employees at the firm level for the probability of firms being involved in innovation activities. We distinguish between four types of innovation: product, process, organisational, and marketing innovation. Moreover, we consider three different types of education for employees with at least 16 years of schooling: technical sciences, social sciences, and humanities. Furthermore, we examine the influence of these different innovation activities on firm productivity. Using a rotating panel data sample of Danish firms, we find that different types of innovations are related to distinct educational types. Moreover, we find that firms that adopt product and marketing innovation are more productive than firms that adopt product innovation but not marketing innovation and firms that adopt marketing innovation but not product innovation. In addition, firms that adopt organisational and process innovation demonstrate greater productivity levels than forms that adopt organisational innovation but not process innovation that again demonstrate greater productivity than firms that do not adopt process innovation but not organisational innovation. Finally, we establish that product and marketing innovation as well as organisational and process innovation are complementary inputs using formal tests for supermodularity. Complementarity can be rejected for all other pairs of innovation types.",
keywords = "Educational composition, Human capital, Innovation, Productivity, Complementarity",
author = "Martin Junge and Battista Severgnini and Anders S{\o}rensen",
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note = "null ; Conference date: 26-08-2013 Through 30-08-2013",
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Junge, M, Severgnini, B & Sørensen, A 2013, 'Evidence on the Impact of Education on Innovation and Productivity' Paper presented at, Gothenburg, Sweden, 26/08/2013 - 30/08/2013, .

Evidence on the Impact of Education on Innovation and Productivity. / Junge, Martin ; Severgnini, Battista; Sørensen, Anders.

2013. Paper presented at European Economic Association & Econometric Society 2013 Parallel Meetings, Gothenburg, Sweden.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - Evidence on the Impact of Education on Innovation and Productivity

AU - Junge, Martin

AU - Severgnini, Battista

AU - Sørensen, Anders

PY - 2013

Y1 - 2013

N2 - This paper investigates the importance of the educational mix of employees at the firm level for the probability of firms being involved in innovation activities. We distinguish between four types of innovation: product, process, organisational, and marketing innovation. Moreover, we consider three different types of education for employees with at least 16 years of schooling: technical sciences, social sciences, and humanities. Furthermore, we examine the influence of these different innovation activities on firm productivity. Using a rotating panel data sample of Danish firms, we find that different types of innovations are related to distinct educational types. Moreover, we find that firms that adopt product and marketing innovation are more productive than firms that adopt product innovation but not marketing innovation and firms that adopt marketing innovation but not product innovation. In addition, firms that adopt organisational and process innovation demonstrate greater productivity levels than forms that adopt organisational innovation but not process innovation that again demonstrate greater productivity than firms that do not adopt process innovation but not organisational innovation. Finally, we establish that product and marketing innovation as well as organisational and process innovation are complementary inputs using formal tests for supermodularity. Complementarity can be rejected for all other pairs of innovation types.

AB - This paper investigates the importance of the educational mix of employees at the firm level for the probability of firms being involved in innovation activities. We distinguish between four types of innovation: product, process, organisational, and marketing innovation. Moreover, we consider three different types of education for employees with at least 16 years of schooling: technical sciences, social sciences, and humanities. Furthermore, we examine the influence of these different innovation activities on firm productivity. Using a rotating panel data sample of Danish firms, we find that different types of innovations are related to distinct educational types. Moreover, we find that firms that adopt product and marketing innovation are more productive than firms that adopt product innovation but not marketing innovation and firms that adopt marketing innovation but not product innovation. In addition, firms that adopt organisational and process innovation demonstrate greater productivity levels than forms that adopt organisational innovation but not process innovation that again demonstrate greater productivity than firms that do not adopt process innovation but not organisational innovation. Finally, we establish that product and marketing innovation as well as organisational and process innovation are complementary inputs using formal tests for supermodularity. Complementarity can be rejected for all other pairs of innovation types.

KW - Educational composition

KW - Human capital

KW - Innovation

KW - Productivity

KW - Complementarity

M3 - Paper

ER -

Junge M, Severgnini B, Sørensen A. Evidence on the Impact of Education on Innovation and Productivity. 2013. Paper presented at European Economic Association & Econometric Society 2013 Parallel Meetings, Gothenburg, Sweden.