earticle

영어

This paper empirically investigates the effects of human capital externalities in regional labor market on innovation outputs at the firm level by employing hierarchical generalized linear modeling. Previous studies have mainly focused on innovation performances at the firm level; however, few studies have focused on the firms' innovation outputs in the context of regional characteristics. This paper posits three specific research questions: i) whether the characteristics of regional labor market, particularly human capital externalities can affect firms' innovation output, ii) what mechanism leads to human capital externalities in regional labor market, and iii) which types of innovation outputs are affected by various characteristics of human capital externalities in regional labor market. This paper shows that both internal and external R&D investment of firm has a significantly positive effect on innovation outputs. Firms employing foreign workers also represent a higher level of innovation output. We also find that diversity of business and the average level of education positively affect R&D investment.