Studying the relationships among human capital, technological capabilities, and innovation in Spanish manufacturing firms

This paper focuses on the relationships among human capital, technological capabilities and innovation. In particular, following the resource-based view and the dynamic capabilities approach, this research proposes that both technological capabilities and human capital are drivers of innovation for both products and processes. In addition, it suggests that the effect of human capital on innovation is mediated by technological capabilities. This idea about mediation arises from a review of the literature, although it has never been specifically addressed. The research uses a sample of 200 Spanish manufacturing firms to test the hypotheses. Findings provide evidence of the direct effect proposed and also show that the relationship between human capital and both product and process innovation is mediated by technological capabilities. However, according to our findings, this mediation is only partial for product innovation. The implications of these results for academia as well as for practitioners are discussed.