The role of training and innovation in workplace performance

This paper examines productivity growth in medium-sized to large workplaces. It uses workplace-level data to explore the links between training and innovation and workplace productivity in Australia. The authors suggest that training results in an increase in the quality of labour as employees acquire greater skills and knowledge. Innovation, such as the introduction of new technology or of new management techniques, improves capital services and the efficiency of the production process. The links between training and innovation and labour productivity are examined using the 1990 and 1995 Australian Workplace Industrial Relations Survey (AWIRS). The paper describes recent trends in innovation, training and productivity. A theoretical framework for investigating the links between training, innovation and workplace productivity is then developed. The next section describes the AWIRS data and identifies some of their weaknesses. The results of the analysis are then presented and discussed. The final section summarises the key findings. The analysis found that: (1) training and innovation are more prevalent in workplaces experiencing strong labour productivity growth; (2) different types of innovation have different effects on labour productivity growth, with changes in how work is done having a greater immediate effect than other forms of innovation; (3) labour productivity growth appears to be enhanced by the joint introduction of training and innovation; (4) the links between training, innovation and labour productivity growth differ between technically efficient and inefficient workplaces; and (5) the timing of the effects of innovation on productivity differs depending on the types of innovation.

This paper examines productivity growth in medium-sized to large workplaces. It uses workplace-level data to explore the links between training and innovation and workplace productivity in Australia. The authors suggest that training results in an increase in the quality of labour as employees acquire greater skills and knowledge. Innovation, such as the introduction of new technology or of new management techniques, improves capital services and the efficiency of the production process. The links between training and innovation and labour productivity are examined using the 1990 and ...  [+] Show more