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Do Localization Economies Derive from Human Capital Externalities?
... In view of this evidence, we ask whether city size is truly an important determinant of wages once we control for spillovers. This issue has not been explored in the literature mainly because, as noted by several authors (Wheeler, 2007;Henderson, 2007;Halfdanarson et al., 2008), the HCE literature has developed almost completely separately from the traditional urban literature on externalities. Further, Henderson (2007) argues that a key issue in recent empirical work on urban knowledge spillovers is the failure to distinguish between knowledge spillovers and agglomeration economies, resulting in some degree of confusion and empirical mis-specification. ...
... Using the 5 per cent Public Use Microdata Sample (PUMS) of the US 2000 Census of Population and an instrumental variable approach, Echeverri-Carroll and Ayala (2008) also find an HCE wage premium of approximately 4.6 per cent for a sample of full-time male workers. Wheeler (2007) notes that productivity gains tied to the geographical concentration of industry (i.e. localisation economies) are among the most robust empirical findings. ...
... His findings support the conclusion that localisation effects average approximately 2.8 per cent without controlling for the level of human capital in a worker's own industry. Once Wheeler (2007) controls for this effect, the average elasticity drops only to about 2.4 per cent. Although not negligible, the small change of the coefficient leads him to suggest that localisation economies do not solely reflect human capital externalities. ...
The literature on the relationship between city size and urban wages argues that productivity and wages are higher in larger cities. Indeed, a doubling of city size is associated with a 4-8 per cent increase in wages. The human capital externalities literature finds evidence of higher wages in cities with an abundant supply of human capital where knowledge spillovers are plentiful. Interestingly, cities with a large supply of human capital are not themselves large. They have a population of fewer than 1.5 million inhabitants. In view of this evidence, this paper questions whether city size has lost its importance as a determinant of high wages. In other words, is city size necessary to explain wage variations, after controlling for knowledge spillovers? Using a large sample from the 5 per cent PUMS of the 2000 US Census, this paper presents econometric evidence for city size and learning spillover effects on productivity. According to the estimates presented, every additional 100 000 inhabitants in the local labour market raises individual hourly wages by 0.12 per cent. Moreover, a doubling of the human capital density in a metropolitan area results in approximately a 2 per cent increase in average individual hourly wages.
... Westerman ve Cyr (2004) tarafından yapılmış olan çalışmada, bütünleyici uyum veihtiyaçlar-karşılananlar uyumu ile iş doyumu, bağlılık ve işten ayrılma eğilimiarasında güçlü ilişki olduğu tespit edilmiştir. Wheeler (2007) kişilerin örgütleriyle uyum sağlayamamaları durumunda ortaya çıkabileceksonuçları araştırmıştır. Sonuç olarak kişi-örgüt uyumunun azalması halinde iş tatmin seviyesinde azalma işten ayrılma niyetinde artış, motivasyon düşüklüğü, sorumluluktan kaçma gibi örgüt aleyhine çıktılara ulaşılmıştır. ...
Bu araştırmada, çalışma yaşam kalitesi ve proaktif çalışma davranışının bireysel ve kurumsal değişkenlerle ilişkileri incelenmiştir. Bu bağlamda örgütsel literatürde çalışma ilişkilerini etkilediği düşünülen çalışma yaşam kalitesi, proaktif çalışma davranışı, algılanan kurumsal itibar, istismarcı yönetim, pozitif-negatif duygu ve benzerlik-bütünleyici uyum değişkenlerinin ilişkileri araştırılmıştır. Araştırma, İç Anadolu Bölgesinden Ankara ve Marmara Bölgesinden İstanbul olmak üzere iki bölgeden rastgele örnekleme yöntemiyle seçilen özel hastanelerde farklı dallarda çalışan 705 sağlık çalışanı ile gerçekleştirilmiştir. Araştırmanın sonucunda sağlık çalışanlarının çalışma yaşam kalitesi ile proaktif çalışma davranışı ve uyum arasında pozitif; istismarcı yönetim arasında da negatif yönde bir ilişki tespit edilmiştir. Proaktif çalışma davranışı pozitif duygu ve uyum ile pozitif; istismarcı yönetim ve algılanan kurumsal itibar arasında da negatif yönde bir ilişki tespit edilmiştir. Ayrıca algılanan kurumsal itibar ile uyum arasında pozitif; istismarcı yönetim arasında negatif yönde bir ilişki tespit edilmiştir.
... Le SI développé a abouti dans quelques pays en développement, notamment en Amérique latine, à l'augmentation des exportations(Machikita, 2010 ;Benavente, 2009), mais a un impact négatif dans d'autres comme les pays d'Afrique Orientale(Chowdhury 2006). Les principales causes du succès du SI développé dans certains pays est la perception de l'utilité des TIC par le dirigeant ainsi que son niveau d'engagement et ses connaissances en SI, la motivation des employés et leur acceptation des TIC, l'assistance technique, les mesures d'accompagnements, et enfin, les changements organisationnels induits par l'utilisation des TIC(Raymond, 2002 ;Raymond et St-Pierre, 2005 ;Wheeler, 2007 ;Guidetti et Mazzanti, 2007 ;Andersson et al., 2007 ;Franklin et al. 2009 ;Apulu et Latham, 2011).La majorité des études réalisées dans les pays développés, montrent que, les exportations sont en corrélation avec le degré de compétence du dirigeant et des utilisateurs des TIC et des logiciels(Cazabat, 2014 ;Kabst, 2011 ;Carreto et Piva ,2010 ;Aspelund, 2005). Les rares études faites dans les pays en voie de développement montrent que le SI de ces entreprises est affecté par les 103 relations de réseaux maintenues par le dirigeant et par le mode d'exportation(Sougata et Sathyajit R, 2009 ;Yang et al.,2009; Oded, 2001).Ce chapitre présente deux objectifs. ...
Pour survivre dans un monde globalisé et de plus en plus concurrentiel, les PME doivent améliorer leur compétitivité et être plus performantes dans leurs relations avec les fournisseurs et les clients. Dans ce contexte, deux constats justifient la mise en place d’une étude sur les SI des PME exportatrices libanaises. Tout d’abord, les auteurs s’accordent pour souligner que les PME sont spécifiques et que leur SI est simple et direct, mais aussi sur le fait qu’exporter nécessite un SI développé pour obtenir des informations sur le marché extérieur. Ensuite, la relation entre SI développé et export est décrite dans la littérature relative aux pays développés comme un catalyseur de développement des PME à l’international. Les travaux réalisés sur le thème dans les pays en développement sont rares et contradictoires. Dans certains pays l’impact des SI développé sur la croissance des entreprises est négatif, tandis que dans d’autres l’impact est positif. En Afrique du Nord et au Moyen Orient, les lacunes bibliographiques dans le domaine sont flagrantes et surtout au Liban. Ainsi le paradoxe relevé entre un SI en PME simple et direct et le fait qu’exporter nécessiterait un SI développé, et les lacunes bibliographiques et résultats contradictoires identifiés dans la littérature, nous poussent à aborder la problématique suivante : Comment et pourquoi les dirigeants des PME Libanaises utilisent le SI pour exporter ? Pour traiter la problématique, nous présenterons tout d’abord les cadres théoriques retenus, puis dans un second temps les relations entre SI, PME et export, et enfin la démarche méthodologique adoptée et les études de cas réalisés pour découvrir les caractéristiques du SI dans les PME exportatrices.L’analyse des cas a montré que les PME exportatrices libanaises ne disposent pas d’un SI développé et parviennent toutefois à exporter et conserver leur part de marchés à l’étranger. Les résultats montrent au final qu’il existe un continuum entre SI simple et SI développé. Les raisons de décision relative au type de SI reviennent au propriétaire dirigeant et se résument par la stratégie d’export, mode d’export et la stratégie SI. Les facteurs influençant le SI des PME exportatrices libanaises se repartissent en deux catégories : Interne et externe. Les facteurs relatifs à l’environnement interne de l’entreprise se résument par la perception d’utilité du SI par le dirigeant ainsi que son dynamisme relationnel, les ressources et compétences à l’export et enfin l’infrastructure disponible. Les facteurs externes reviennent aux conditions sociopolitiques et économiques du pays.
... The second perspective is how to create, match, and integrate labor resources with other resources in the region, such as technology and patents (van Oort and Bosma, 2013). For example, Antonelli et al. (2011) and Wheeler (2007) argued that labor resources and productivity are positively related. Tewari (1999) ...
Having reviewed 1259 papers on cluster theory, we find that current cluster studies primarily discussed cluster phenomena from either a microlevel or mesolevel. We argue that studying relations among clusters would increase our understanding of clusters, and such a research topic is worth becoming a new research orientation for cluster theory.
... According to human capital theory, individuals who have invested more in their education and training are more likely to earn higher wages and be employed in higher-level occupations (Becker 1964;Mincer 1974). Traditional approaches based on human capital theory are often backed by empirical research suggesting that educational attainment, typically measured as the level of education, increases individual labor market outcomes and contributes significantly to urban productivity (e.g., Rauch 1993;Moretti 2004;Wheeler 2007;Abel and Gabe 2011). However, human capital involves far more than educational attainment and can be thought of more generally as all the innate and acquired skills that affect worker performance (Autor et al. 2003;Ingram and Neumann 2006;Scott and Mantegna 2009;Mellander and Florida 2011). ...
The purpose of this study was to examine the effects of occupational skills on the gender wage gap in the Seoul metropolitan region, Korea, by employing a multilevel model. To account for the diverse dimensions of skills, we measure workers’ skills using disaggregated measures of occupational skills requirements from the Korea Network for Occupations and Workers data. Using factor analysis, we identify three broad occupational skills categories: cognitive, technical, and physical. The multilevel analysis yields several important empirical results. First, the average occupational wage tends to be higher in occupations that are associated with higher cognitive skills and lower levels of technical and physical skills. Second, the gender effect on wages is larger in occupations requiring higher levels of physical skills and lower levels of technical skills, when controlling for individual- and occupation-level variables. However, the wage penalty associated with technical skills is more severe for women than it is for men, suggesting a significant wage disadvantage for women in occupations associated with technical skills. Finally, in addition to the main effect of the three dimensions of occupational skills, the effect of a greater proportion of female workers within an occupation is significant and negative for all workers, but this effect is less pronounced for men.
... We, however, use a much simpler approach. Our indicator for localisation e¤ects is the concentration of an industry at speci…c locations (other, more sophisticated approaches can be found, e. g. in Wheeler 2007). Of course concentration could also be caused by natural resources or urbanisation e¤ects, but if there are localisation e¤ects they unambiguously favour concentration. ...
We explore the impact of the age structure of human capital on average regional productivity by applying a spatial econometric analysis based on an augmented Lucas-type production function. We also apply a new definition of regional human capital focusing on its availability. The estimates provide evidence that there are age specific human capital effects in Germany and that a temporary increase in regional productivity could occur during the demographic transition. Furthermore, it becomes clear that the availability based definition of human capital provides additional insight and so, could enrich future studies on regional human capital.
... L'impact positif de la dotation urbaine en capital humain sur le salaire (Liao, 2010 ;Glaeser et Berry, 2005 ;Lobo et Smole, 2002), de même que sur la croissance régionale (Hammond, 2006 ;Cheshire et Magrini, 2009), est largement confirmé. Il peut être rattaché à deux caractéristiques métropolitaines : la taille urbaine (Rosenthal et Strange, 2008), et la diversité économique (Wheeler, 2007). L'accumulation de capital humain permet également d'améliorer la croissance urbaine 9 comme le confirment Simon et Nardinelli (2002) sur long terme (1900-1990) et Glaeser et Shapiro (2003) sur la période récente . ...
Research on metropolization has been very active during the 1990s, but it seems to have relatively run out during the next decade. In this paper, we review the way metropolization was dealt with in economics these last ten years. We use bibliometric tools and network analysis so as to bring out four main fields of research. Each one is analyzed from the point of view of the theoretical filiation and of the dynamics of publication. We also bring out the main questions and the controversies of the 2000s. The Global City is based on geographers\' works such as Friedmann and Sassen. Various classifications to qualify the global urban hierarchy are developped. Several authors argue in favour of a more explicit consideration of the territory. The Innovative City is at the intersection of urban economics and the geography of innovation. If the impact of economic diversity and proximity is still studied, the localization of headquarters is an emerging theme. The Cognitive City, which derives from the application of the human capital theory to the city, sees growing research on the nature of the externalities of knowledge. Finally, the Creative City, stemming from Florida’s theses at the beginning of 2000s, is an emergent theme. As such, it is the object of rather lively controversies: on the composition of the creative class, on the \"primacy of location\" of creative people or firms, and on the nature of the \"creative milieu\". This literature brings to the foreground some innovative themes such as the work on cosmopolitanism.
... Scrutiny of the figure reveals a conspicuously regular pattern in the relationships between metropolitan size categories and the indexes of human capital and work. Thus, types of human capital and work that are predominantly cognitive and relational (e.g., self-motivation versus direction from others; relational skills) are systematically and positively linked to metropolitan size (cf., Wheeler 2007). By contrast, types that revolve around physical labor and practical knowhow (e.g., body strength and stamina; equipment and materials handling) are inversely related to size. ...
The O*NET database provides a wealth of information on the qualitative aspects of different occupations. On the basis of these data, we carry out an investigation of the forms of human capital and work that can be found at different levels in the urban hierarchy of the United States. The study proceeds, first, by means of factor analysis of the original O*NET data, second, by constructing a derivative set of indexes of human capital and work activities for metropolitan areas, and third, by subjecting these indexes to multiple regression analysis. The results indicate that human capital and work activities in US metropolitan areas vary systematically across the urban hierarchy, as revealed by the relative concentration of occupations that rely heavily on cognitive and behavioral resources at the top end of the hierarchy and a relative concentration of occupations that rely on physical work at the bottom. However, there are some important exceptions to this general pattern.
... 3 Assistant Professor of Economics, Bryant University, USA. concentration in industries are associated with wage gains [Wheaton and Lewis, 2002]; (ii) location economies and human capital externalities seem to be quite distinct phenomena [Wheeler, 2007]; ...
This research examines whether knowledge spillover exists in the United States and Brazil, as proposed by Lucas [1988], Romer [1990] and Acemoglu [1996]. Specically, this paper uses a quasi-Mincerian approach to verify wether the concentration of college-educated individuals employed in the business service sector contributes to increased productivity in other sectors of the economy. We estimate the return to education in major market sectors using data from the 2008 U.S. Current Population Survey (March supplement) and from the 2008 Brazilian household survey (PNAD). This paper nds evidence of a positive and signicant spillover eect. In addition, this paper also nds evidence of increasing returns to education in Brazil, and diminishing returns to education in the United States.
... Audretsch and Feldman (1996) assume an equivalence of human resources and knowledge, suitable of being transferred throughout the cluster, causing positive externalities. Wheeler (2007) also stresses the relevance of human resources as prerequisites of positive cluster effects. He interprets evidence for human capital externalities as indicator for Marshallian spillovers and regards "intra-industry knowledge spillovers as a function of human capital externalities" (p. ...
The entry of new actors is an important, but not sufficiently examined aspect of research about regional clusters. This paper contributes to the existing literature about cluster entry by extending prior research. It incorporates the possibilities of negative and positive selection of entrants into a theoretical framework, and analyzes empirically the characteristics of cluster entrants from the cluster- and the firm-perspective. Negative selection could be caused by contribution- and benefit-asymmetry between weak and strong entrants. Positive selection could be caused by the cluster characteristics of increased transparency, enhanced competition, and the necessity of absorptive capacity. Two data sets are analyzed in this paper. Expert interviews with cluster managers are transformed into numbers and analyzed regarding potential external influence factors of selection tendencies. Further, survey data from the Ger-man automotive industry is analyzed with the goal of comparing cluster-members and non-members. Our main finding is that an industry’s technology intensity significantly influences entry tendencies. While high-tech industries are characterized by negative selection, positive selection is prevalent in medium and low-tech industries. To recheck this result we exemplified it relating to the automotive industry (medium-tech). The recheck shows that automotive companies being members of clusters are endowed with significantly better human resources than non-members, which means that positive selection is prevalent in the analyzed industry.
... La formazione dei lavoratori, ad esempio, è un elemento complementare all'innovazione tecnologica in quanto fornisce skills e competenze per poter sfruttare al meglio le innovazioni introdotte, traducendosi in un aumento della produttività stessa. Sempre su tale tema recenti contributi empirici che utilizzano strumenti di econometria spaziale hanno mostrato che i livelli di produttività del lavoro e la crescita stessa della produttività sono più elevati in aree geografiche in cui vi è una concentrazione maggiore di capitale umano (Wheeler, 2007;Andersson, Grasjo e Karlsson, 2007). ...
Partendo dalla base di studi microeconomici sul comportamento delle imprese in termini di attività innovativa, il presente lavoro offre un’analisi empirica per un sistema produttivo locale (Ferrara) volta ad evidenziare la presenza di legami tra attività innovativa in differenti sfere e performance economica d’impresa in un periodo di recessione. Si testa se l’attività innovativa svolta prima della crisi economica ed in risposta ad essa garantisca migliori performance economiche durante la fase acuta della crisi stessa. I risultati mostrano che le imprese più impegnate in attività innovative pregresse e contemporanee alla crisi sono anche quelle che risentono in minor misura della crisi, che la affrontano con comportamenti proattivi e mostrano migliori performance economiche anche nel pieno della crisi. Questo risultato si realizza grazie soprattutto al ruolo cruciale svolto dalle complementarietà e sinergie tra le attività intraprese dall’impresa nelle differenti sfere innovative.
... We, however, use a much simpler approach. Our indicator for localisation e¤ects is the concentration of an industry at speci…c locations (other, more sophisticated approaches can be found, e. g. in Wheeler 2007). Of course concentration could also be caused by natural resources or urbanisation e¤ects, but if there are localisation e¤ects they unambiguously favour concentration. ...
We explore the impact of the age structure of human capital on average regional productivity by applying a spatial econometric analysis based on an augmented Lucas‐type production function. We also apply a new definition of regional human capital focusing on its availability. The estimates provide evidence that there are age specific human capital effects in Germany and that a temporary increase in regional productivity could occur during the demographic transition. Furthermore, it becomes clear that the availability‐based definition of human capital provides additional insight and so, could enrich future studies on regional human capital.
Resumen
Exploramos el impacto de la estructura de edades del capital humano sobre la productividad regional media mediante un análisis econométrico espacial basado en una función de producción tipo Lucas aumentada. Aplicamos también una nueva definición de capital humano regional poniendo énfasis en su disponibilidad. Las estimaciones aportan pruebas de que en Alemania existen efectos del capital humano específicos de la edad y que la productividad regional podría aumentar temporalmente durante la transición demográfica. Además, queda claro que la definición de capital humano basada en la disponibilidad aporta conocimientos adicionales y por lo tanto podría enriquecer en el futuro estudios sobre capital humano regional.
... In the light of this lacuna, a number of researchers have turned recently to explorations of the spatial and locational dimensions of human capital. Hitherto, it has been difficult to find relevant data indexed by location, with the exception of levels of educational attainment, and so much of the empirical work on the geography of human capital has tended to focus primarily on this variable (see, e.g., Berry and Glaeser 2005;Glaeser and Maré 2001;Rauch 1993;Simon and Nardinelli 2002;Wheeler 2007). Researchers pursuing this line of investigation have shown with considerable plausibility that high levels of educational attainment are a major factor in promoting high levels of urban productivity and accelerated rates of growth, especially in large cities. ...
This article examines the changing structure of human capital in U.S. metropolitan regions from 1980 to 2000. Data are drawn from the Dictionary of Occupational Titles and from the Integrated Public Use Microdata Series. Intensive empirical investigation leads to three main conclusions. First, forms of human capital in the United States are becoming more oriented to labor tasks that call for cognitive-cultural skills. Second, cognitive-cultural skills are accumulating most intensively in large metropolitan areas. Third, physical or practical forms of human capital are increasingly being relegated to smaller metropolitan areas. That said, important residues of human capital, focused on physical or practical tasks, remain a durable element of the economies of large metropolitan areas. I offer a brief theoretical explanation of these results.
... Scrutiny of the figure reveals a conspicuously regular pattern in the relationships between metropolitan size categories and the indexes of human capital and work. Thus, types of human capital and work that are predominantly cognitive and relational (e.g., self-motivation versus direction from others; relational skills) are systematically and positively linked to metropolitan size (cf., Wheeler 2007). By contrast, types that revolve around physical labor and practical knowhow (e.g., body strength and stamina; equipment and materials handling) are inversely related to size. ...
This article is devoted to an investigation of the forms of human capital that characterize cities at different levels of the US urban hierarchy. Basic data on human capital are drawn from the O*Net information system. A first analytical exercise shows that for the USA as a whole, occupations marked by broadly cognitive human capital assets gained in employment over the period from 2000 to 2006, whereas employment in occupations marked by broadly physical human capital assets declined. These same types of assets bear a distinctive relationship to the urban hierarchy, with the former being concentrated in large metropolitan areas, and the latter in small. Changes in these assets over the 2000–2006 period are then examined. Surprisingly, cognitive assets increased most strongly in small metropolitan areas and physical assets increased most strongly in large. Further analysis of these findings suggests that they are quite consistent with a wider view of the contemporary urban economy. In particular, in large metropolitan areas, expanding human capital assets focused on the physical abilities of workers has nothing to do with the ‘old’ economy as such, but represents a major—and hitherto much overlooked—segment of the labor force whose functions revolve around the maintenance of the material and social fabric of life in those areas.
Abstraksi: Salah satu penyebab terjadinya aglomerasi ekonomi ialah adanya manfaat dari efek limpahan modal manusia (human capital spillover). Industri akan cenderung terkonsentrasi di satu lokasi agar produktivitasnya lebih tinggi sebagai konsekuensi alamiah transfer ilmu pengetahuan dan teknologi dari perusahaan lain yang berada di sekitarnya. Bentuk transfer tersebut dapat dilakukan dalam bentuk interaksi formal maupun informal melalui para pekerjanya. Dengan kata lain, kebutuhan akan lokasi dimana terdapat akumulasi ilmu pengetahuan merupakan faktor penting yang dapat mempengaruhi perilaku industri beraglomerasi. Dengan menggunakan variabel output industri, proporsi jumlah pekerja lulusan minimal lulusan Sarjana Muda dalam kota, input tenaga kerja dengan tingkat modal manusia tinggi, input tenaga kerja dengan tingkat modal manusia rendah, dan input selain tenaga kerja, paper ini berusaha membuktikan bahwa terdapat efek limpahan modal manusia yang mempengaruhi produktivitas industri (ISIC 3-digit) yang tersebar di Kota Medan, Batam, Palembang, Jakarta, Surabaya, Banjarmasin, dan Makassar pada periode 1995-1997. Temuan ini menunjukkan bahwa suatu industri akan menghasilkan output yang lebih besar bila berlokasi di kota yang memiliki tingkat modal manusia tinggi dibandingkan jika berlokasi di kota dengan tingkat modal manusia rendah, karena pengaruh limpahan modal manusia. Abstract: An important rationale of economic agglomeration is the advantage of human capital spill-over effect. Firms tend to concentrate in a certain location to obtain the industrial improvement caused by the availability of scientific and technological transfers from other firms through formal and informal interactions of their workers. In other words, the need of location, as a pool of information, is an important factor influencing the industry's behavior. By using variables: industrial output, the proportion of workers who hold at least undergraduate degree in the city/urban area, labor input with high human capital, labor input with low human capital, and non-labor inputs, this paper tries to show that an industry is able to produce higher output, if it is located in the city/urban area with high human capital, compared to the industry that is located in the city/urban area with low human capital as the impact of human capital spill-over effect. Keywords: efek limpahan modal manusia, industri manufaktur, konsentrasi spasial, regresi data panel 1 Staf pengajar tetap Departemen Ilmu Ekonomi dan peneliti di Lembaga Demografi, Fakultas Ekonomi, Universitas Indonesia. 2 Alumni Fakultas Ekonomi Universitas Indonesia.
Education can generate important externalities that contribute towards economic growth and convergence. In this paper, we study the drivers of such externalities by conducting the first meta-analysis of the social returns to education literature. We analyse over 1,000 estimates from 31 articles published since 1993 that cover 15 countries. Our results indicate that: 1) spillovers slow down with economic development; 2) tertiary schooling and schooling dispersion increase spillovers; 3) spillovers are smaller under fixed-effects and IV estimators but larger when measured at the firm level; and 4) there is publication bias (but not citation bias).
In the debates on regional economic analysis, scholars generally reach the consensus that the industrial frame and the occupational mix are not very accurate substitutes for each other. While industry concentration and mix are widely accepted as significant, the independent consideration of occupation has been shown to be important, especially for creativity-concentrated regions. However, neither the industrial nor the occupational mix is separately sufficient to be solely applied to understand the entire regional situation. This paper develops an integrated occupational and industrial structure (IOIS) at the state and also the national level in order to bridge the gap between separate industrial and occupational analytic results. The case of California is used to demonstrate that the integrated approach is a more effective way than either the single occupational or industrial analysis. The further application of this approach to data for the fifty states provides a general view of joint occupational and industrial development across the nation. This approach further links the occupational approach and the industrial development together by providing a new way to measure and identify the regional comparative difference to be able to implement more fruitful policy-making decisions.
A firm's absorptive capacity, human capital and linkages with knowledge institutions have been shown to increase the firm's probability of innovating in OECD economies. Despite its importance for national- and firm-level competitiveness, few papers examine the impact of the same variables for firms innovation in Latin America. This paper investigates the link between firm innovation and its absorption capacity as proxied by the presence of a R&D department, the firm's human capital, and its interaction with research centers and universities. We analyze the case of Chilean and Colombian manufacturing firms using data from innovation surveys. A probit regression model is applied to identify the determinants of innovation activity. We find that collaboration with university and research institutions is associated with an increase in the probability of introducing a new product in Chilean and Colombian firms of 29 and 44 percent, respectively, and it can increase up to 58 percent in the case of Colombian firms interacting with research centers. Moreover, firms whose employees have a higher level of education, or whose managers/supervisors have a higher (perceived) level of knowledge, are more likely to innovate. Although the estimates could be affected by biases and suffer from shortcomings in data, the findings suggest that policies and incentives to increase firm-level human capital and industry-university linkages are important to increase innovation in Latin America.
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