Firms that invest in R&D and at the same time in worker skills (on-the-job training) are expected to be more successful in innovation. However, it is less evident the extent to which these investments reinforce the impact of one another on innovation. This paper sheds some light on this issue by...

The paper analyses the theoretical and empirical relationship between employment, skill structure and innovation in East and West German manufacturing firms. The econometric part builds on firm data from the Mannheim Innovation Panel 1993, 1994 and 1995. In the German industrial sector,...