Vocational Training and Innovation Emilie-Pauline Gallié∗and Diègo Legros†

Abstract: Human capital is considered as one of the main inputs in economic growth. Human capital can generate endogenous growth thanks to a continu-ous process of knowledge and externalities accumulation (Aghion and Howitt, 1998). In that context, this paper explores the relationship between innovation and vocational training. Our methodological approach allows to contribute to the literature in three manners. First, we propose different indicators of vo-cational training. Second, we build a count data panel with a long time data series. This deals with the issue of non-random selection and potentially with measurement error from short panels. Finally, we explicitly allow for endogene-ity and fixed effects using GMM techniques. Estimations are made on a panel data set relative to French industrial firms over the period 1986-1992. Our re-sults indicate that whatever the indicators, vocational training has a positive impact on the technological innovation