Do Labour Markets and Educational and Training Systems Matter for Innovation Outcomes? A multi-level analysis for the EU-27

Recent work on national systems of innovation has argued that there are systemic relations between national labour market and education and training systems, and the dynamics of knowledge creation and innovation at the enterprise-level. Building on the insights of this research, this paper used aggregate data available on Eurostat's electronic data base and enterprise-level data from the 2007 Innobarometer Survey to estimate a multi-level logistic model examining simultaneously the impact of enterprise-level and national-level variables on the likelihood of an enterprise innovating. The results show that innovative performance is supported by national systems of 'flexicurity' which combine flexibility on the labour market with the generous provision of unemployment protection including the use of active labour market policies and well-developed systems of life-long learning