In fact,even when implementing technologies and products already available elsewhere,firms still need a workforce with the appropriate skills and knowledge. We found that firms that provide even minimal formal training to employees are7.5an...
In fact，even when implementing technologies and products already available elsewhere，firms still need a workforce with the appropriate skills and knowledge.
We found that firms that provide even minimal formal training to employees are7.5and7.7percentage points more likely to introduce a new product and implement a new process，respectively.
The World Bank Enterprise Surveys，on the other hand，have somewhat less detailed indicators of innovation and human capital，but cover a substantial number of developing Asian economies.
While firm-level surveys exist for several developing Asian economies with detailed information on innovative activity and human capital，differences in survey instruments，sampling methodology，and population of inference make cross-country analysis extremely challenging.
And to a lesser extent in process innovation，suggesting that different aspects of human capital matter to different types of innovation.
This supports the argument that firm-level training can update or upgrade employees’knowledge，and more importantly，provide employees with specific knowledge not learned from general education.
It is commonly understood that one of the key ingredients of innovation inputs include training and human capital，defined as the skills，knowledge and experience of a work force.
Data is usually a key issue when it comes to examining innovation and its determinants，particularly in a developing country context.
Given this broad context on the importance of human capital for innovation，we decided to probe deeper using firm level data covering27developing countries in Asia，including about27，000firms.
This was conducted as background work forAsian Development Outlook2020:What Drives Innovation in Asia?
We use the World Bank Enterprise Surveys to explore the relationship between a firm’s propensity to innovate and its human capital， 澳门赌博现金网投注平台proxied by employee educational attainment， 澳门赌博官方平台网站employee training， 澳门线上真人赌博平台and industry-specific experience of the top manager， 澳门赌博游戏在线开户
While policies such as research and development tax credits and direct public funding may boost innovation in the short run，increasing the stock of human capital is more effective in the long run.
In sum，we show that a firm’s human capital—proxied by the percentage of the workforce with high school education，managerial experience，and employer-sponsored training—is positively and significantly associated with the likelihood of engaging in product innovation.
Our findings suggest that employer-sponsored training may be a mechanism to compensate for the constraints resulting from an inadequately educated workforce.
R&D expenditure is positively associated with innovative outcomes—firms that spend on R&D activities are34.8percentage points more likely to report a new product and38.4percentage points more likely to report a new process.
We also explore whether offering training to employees becomes more relevant when firms face constraints to their operations due to inadequately skilled workers.
Firm-level training can update or upgrade employees’knowledge，and more importantly，provide employees with specific knowledge not learned from general education.
Once again，we find that training is associated with an increase in the likelihood of introducing a new product by6.6percentage points for firms that do not face severe or very severe skills constraints，and12.4percentage points for skills-constrained firms.
Human capital strengthens the capacity of a firm to absorb and develop new knowledge and as such it is an essential part of both frontier and catch-up innovation.
A well-trained workforce is more likely to spur innovation at companies.Firms that provide even minimal training to employees are nearly8percentage points more likely to introduce a new product and implement a new process.
Innovation at the company level matters tremendously for competitiveness and sustainability and a country’s long-term growth prospects.
We also investigated whether employer-sponsored training is more strongly associated with innovative activity for firms reporting skill constraints.
which is a neglected but important firm attribute when studying innovation.
A“very small”increase in the share of the workforce with high school education is associated with an increase in the likelihood of introducing a new product by0.042percentage points，and the top manager’s experience is associated with an increase in this likelihood by1.5percentage points.
Firms that export，meanwhile，are about3.2percentage points more likely to report a new product or process innovation than firms selling only to the domestic markets.
Meanwhile，ourfindingsalso show that medium and large firms are about4.6and7.4percentage points more likely to report a new product，and7.1and11.8percentage points more likely to report a new process than small-sized firms，respectively.