Firm's Technology Change, Innovation and Employees' Decision in Human Capital Investment: Evidence from SMEs in Zhejiang Province

摘要

This paper examines the decisions of employees in human capital investment under conditions of technology change. It uses data taken from a recent survey that permit employees' schooling or training decisions and the characteristics of firms' technology change and innovation practice to be analyzed. The study finds strong evidence on the hypothesis that rapid technology change and innovation can motivate more participation in human capital investment. Meanwhile, for general human capital obtained from schooling and firmspecific human capital obtained from training these two different types of human capital, in conditions of technology change, both kinds of human capital investment of employees have shown a significant correlation.