Shortage of Skilled Workers Threatens Innovation Capacity
Research
16.08.2023
Lack of Staff Can Be Partially Substituted through Collaborations
Companies affected by the shortage of skilled workers are finding it increasingly difficult to carry out innovative projects due to the lack of expertise and capacity, resulting in a loss of innovation strength. To mitigate the repercussions of unfilled positions, companies are increasingly turning to innovation partnerships. This is the conclusion of a joint study conducted by researchers from ZEW Mannheim and KU Leuven, based on data from the Mannheim Innovation Panel, which has been collected annually since 1993 following a standardised European methodology.
“Our study reveals that companies adversely affected by the scarcity of skilled workers are actively seeking external know-how through collaborations or technology transfers,” says Professor Dirk Czarnitzki, Research Associate in ZEW’s “Economics of Innovation and Industrial Dynamics” Unit. “Especially companies facing acute shortages of university-educated, highly qualified personnel are turning to innovation partnerships as they depend on technological advancements to remain competitive.”
Collaborations offer short-term relief
The shortage of skilled workers means that the affected companies cannot fully exploit their potential, making them more likely to face disadvantages compared to their competitors. “The exchange of know-how with external partners can partially compensate for the dearth of competencies. However, it’s essential to recognise that these arrangements cannot fully replace a company’s internal expertise. Ultimately, the success of these collaborations hinges on the availability of sufficient capacities to execute them,” explains Czarnitzki. “In the long term, more than just collaborations are needed to solve the problem. Targeted training and qualification of the workforce, promoting collaboration between companies, and improving the education system are possible approaches to address the issue.”
About the Mannheim Innovation Panel (MIP)
Since 1993, ZEW has been collecting annual data on innovation activity in the German economy. Through surveys commissioned by the German Federal Ministry of Education and Research, important information is obtained on corporate introduction of new products, services and processes, expenditures for innovations, and the success that companies achieve with new products, new services and improved procedures. In addition, the surveys provide information on the factors that promote and hinder future corporate investments.
The ZEW Innovation Survey forms a crucial basis for assessing the technological performance of the German economy. Conducted annually, it takes the form of a panel survey known as the “Mannheim Innovation Panel” (MIP). The ZEW Innovation Survey is also Germany’s contribution to the European Commission’s Community Innovation Survey (CIS). Overview and access to the CIS result tables.
