Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202179
Authors: 
Romano, Livio
Year of Publication: 
2018
Series/Report no.: 
JRC Working Papers on Corporate R&D and Innovation 03/2018
Abstract: 
This paper provides first empirical evidence of the joint effects that innovation strategies and human resource management practices exert on firm growth. By exploiting unique information from a large sample of Italian manufacturing companies in the very recent years, it shows that investing in technology and implementing performance-based pay policies are both positively associated with a significant turnover, employment and labor productivity growth premium. However, their joint adoption does not necessarily sum the two effects. In particular, performance-based rewards boost growth of non-innovators and of firms pursuing relatively simple innovation strategies, centered around the acquisition of embodied technology. For firms strongly relying on R&D as an additional lever for product and process upgrading, the estimated effect of having in place monetary incentive mechanisms is null or even negative.
Subjects: 
Heterogeneity
Innovation
Management Practices
Firm Growth
JEL: 
L20
M21
O30
Document Type: 
Working Paper

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