Human Capital Theory:
Implications for Innovation and its Applications
Dissertation
zur Erlangung des akademichen Grades Doctor of Philosophy
(Ph.D.)
vorgelegt dem
Rat der Wirtschaftswissenschaftlichen Fakultät der Friedrich-Schiller-Universität Jena
am 10.06.2015
von: M.Sc. Applied Economics, Ipsita Roy
geboren am: 23.04.1987 in: Calcutta, India
Contents
List of Figures 7
List of Tables 9
Acknowledgment 11
Authorships 13
Dedication 15
Deutsche Zusammenfassung 17
1 Introduction 25
1.1 Human Capital: Foundation and Concepts 28
1.1.1 Formal Education 29
1.1.2 Human Resource Management 30
1.1.3 Skills 32
1.2 Defining Social Capital 33
1.3 Defining Innovation 34
1.4 Structure and Boundaries of the Thesis 35
1.4.1 Chapter 2 36
1.4.2 Chapter 3 38
1.4.3 Chapter 4 39
1.4.4 Chapter 5 40
2 Works Councils, Training Activities and Innovation: A Study of
German Firms 43
2.1 Introduction 43
2.2 Literature Review and Research Questions 46 2.2.1 Human Capital and Performance 46 2.2.2 Works Councils and Performance 46 2.2.3 Works Councils and Human Capital 47
2.2.4 Hypotheses 48
2.3 Data and Empirical Approach 52
2.3.1 Variables and Descriptive Statistics 52
2.3.2 Econometric Methodology 56
3
Contents
2.4 Empirical Findmgs 57
2.4.1 Training Types and Presence of Works Councils 57 2.4.2 Training Types and Innovation Performance 59
2.5 Conclusion and Future Research 63
2.6 Appendix 65
3 Role of Human Resource Practices in Absorptive Capacity and
R&D Cooperation 67
3.1 Introduction 67
3.2 Background 68
3.2.1 Human resource practices and Absorptive capacity .... 68 3.2.2 R&D Cooperation and Human resource practices 70 3.2.3 Human resource practices, R&D Cooperation and Innovation 73
3.3 Literature Review 74
3.4 Data and Variable Description 77
3.5 Methodology 79
3.6 Results and Discussion 82
3.7 Concluding Remarks 86
3.8 Appendix 89
4 Knowledge Spillovers through FDI and Trade: Moderating Role
of Quality- Adjusted Human Capital 93
4.1 Introduction 93
4.2 Theoretical Background 96
4.2.1 Knowledge Spillovers through International Trade and For
eign Direct Investment 96
4.2.2 Moderating Knowledge Spillovers: Human Capital 99 4.2.3 Quantity vs. Quality of Human Capital 101
4.3 Models 104
4.3.1 Model 1: CH Specification 104
4.3.2 Model 2: Base specification (Extension of Modell) 104 4.3.3 Model 3: Complementarity between Import-related Spillovers
and FDI 105
4.3.4 Model 4: Human Capital as a Moderator of Knowledge
Spillovers 105
4.3.5 Model 5: Role of Technological Gap 105
4.4 Data 106
4.4.1 Total Factor Productivity (TFP) 106
4.4.2 R&D Capital Stock 106
4.4.3 Knowledge Spillovers 107
4.4.4 Human Capital Variables 108
4.4.5 Technological Gap 108
4.5 Empirical Methodology 109
4.6 Estimation Results 111
4.7 Conclusion 113
4
Contents
4.8 Appendix 115
4.8.1 Brief Overview of Cointegration 115 4.8.2 Line Plots: Per capita Variables 116 5 Employment Polarization in Germany: Role of Technology, Trade
and Human Capital 123
5.1 Introduction 123
5.2 Background and Related Literature 125
5.2.1 The Task-based Approach 125
5.2.2 International Trade 128
5.2.3 Regional Employment and Human Capital 131
5.3 Data and Methodology 133
5.4 Main Findings 136
5.5 Conclusion 142
5.6 Appendix 144
6 Concluding Remarks 147
6.1 Overview of Results 147
6.2 Novelty and Policy Implications 150
6.3 Limitations and Future Research 152
References 155
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