Igniting innovation: how managerial training drives patent propensity

Abstract

Purpose This study investigates the impact of managerial training on firms' innovation outcomes, focusing on how the “breadth” and “intensity” of training influence the likelihood of patent filings. Design/methodology/approach The analysis relies on a unique dataset that merges administrative training records from Fondirigenti – Italy's largest inter-professional fund for managerial training – with patent data from REGPAT and firm-level financial data from AIDA (the Italian section of Bureau van Dijk). To estimate the causal effects of training on innovation the study employs the Lewbel estimator using both endogenous and exogenous instruments. Additional analyses are conducted using probit models and Inverse Probability Weighting (IPW). Findings Results reveal a differentiated effect of training characteristics: the number of training programs attended by managers (“breadth”) has a significant positive impact on the likelihood of patent filings, while the total hours of training (“intensity”) does not. The positive association between training breadth and innovation is especially strong among smaller, less productive firms and those operating in supplier-dominated sectors. Practical implications Policymakers and firms should promote managers' training as a mean to igniting innovation, prioritizing the breadth of the scope of training opportunities over simply increasing training hours, especially when targeting innovation outcomes in smaller or less productive firms. Originality/value This is one of the first studies to causally link managerial training characteristics to firm-level innovation using a large-scale administrative dataset combined with patent and financial data, offering new insights into the nuanced effects of training “breadth” versus “intensity”.