INVESTMENT IN MACHINERY AND EQUIPMENT AND INCIDENCE OF WORKPLACE TRAINING AS DRIVERS OF FIRM PRODUCTIVITY

Evidence is provided on the relationship between training and technology. The literature is reviewed in areas related to the interaction of training and technology: skill-biased and skill-induced technological change; innovation; endogenous growth and spillover and Cluster effects; high-performance work systems and complementary bundling; and the relationship between product markets, strategic investments and human resource practices including training. Empirical evidence is presented based on the 2005 Workplace and Employee Survey. Limitations of the research are Outlined as are Suggestions for further research. Policy questions are also addressed.