Knowledge and the “knowledge factory” Self-evidently, better educated working people have a greater capability for innovation and adapt better to organizational changes. The correlation between the share of universitytrained staff in a firm and its capacity for innovation is high. When the share is above a certain threshold, the probability of the firm’s investing in R&D is greater.
If there is little doubt about the benefits of a more highly skilled work force, it is not so straightforward to determine precisely which skills are required. The computerization of production processes achieved to date has put a premium on managerial and intellectual functions and made it possible to turn many repetitive functions, including intermediate functions, over to computers.