SHORT-TERM AND LONG-TERM RETURNS TO INNOVATION FROM THE APPLICATION OF TECHNOLOGY AND TRAINING PRACTICES

Abstract

The intention of this paper is to investigate innovation outcomes associated with complementary sets of training practices. Our analysis is performed using a multiple linear regression model with lagged variables on several different service sectors. We lagged three training and technology factors and noted the extent of innovation within and between these factors while comparing returns to innovation in the short-term (one year) to the long-term (the following six years). We hypothesised that the complexity of technology and process of learning by doing/using would result in short-term innovation returns being far less than those experienced in the long-term. We predicted the opposite would occur for the training factors due to the obsolescence of acquired skills over time. Our results show that short-term innovation returns for training factors are consistently higher than those for technology. This lends support to our hypothesis.