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Training was carried out by firms of all sizes, but
larger firms were more likely to have such
programs: 77% of small firms, 85% of medium
firms and 91% of large firms reported having
training programs. However there is a strong
dependency between training and the “new and
unique” factor, and the presence or absence of
training programs, a dependency which is less
strong when the standard Oslo definition of “innovative” is used.(Figure 1a and 1b)
Table 1: Training Programs by Innovativeness
Training Programs
% of all respondents
No Yes sig of c2
New Product or Process No 5% 11%
in the past five years Yes 15% 70%
0.074
New & Unique Product or No 13% 35%
Process in the past five
years Yes 8% 45%
0.028
Innovation and the Management of Human Resources
CPROST Report #00-03 5
Acquisition of skills
Acquisition of skills is always an important issue for firms. Firms were asked how they went about
acquiring skilled workers:
Table 2: Skill Acquisition Strategies by Innovativeness
% of respondents by category Train to acquire
required skills
Hire to acquire
required skills
Contract to
acquire required
skills
New Product or Process in No 80% 77% 50%
the past five years Yes 91% 75% 45%
New & Unique Product or No 87% 69% 31%
Process in the past five
years Yes 92% 80% 54%
By size of firm:
Table 3: Skill Acquisition Strategies by Firm Size
% of respondents by category Train to acquire
required skills
Hire to acquire
required skills
Contract to
acquire required
skills
Small (less than 20 employees) 89% 70% 44%
Medium (less than 100 employees) 93% 86% 46%
Large (more than 100 employees) 81% 88% 50%
Availability of personnel
The availability of personnel is always a concern for managers and owners. Respondents were
asked whether the availability of qualified personnel helped, had no effect, or hindered innovation in
their firms:
Table 4: Effect of Availability of Personnel by Innovativeness
Availability of Personnel
% of respondents by category
Hinders No Effect Help sig of c2
New Product or Process in No 32% 28% 40%
the past five years Yes 21% 39% 40%
0.396
New & Unique Product or No 27% 42% 30%
Process in the past five
years Yes 19% 33% 48%
0.043
Using the Oslo definition of innovation, there is no significant dependency present in the data. However, by
using the "new and unique" definition, a significant dependency is indicated between the effects of availability of
Innovation and the Management of Human Resources
CPROST Report #00-03 6
personnel and innovativeness. The data shows that for innovative firms, the availability of qualified personnel
helps innovation, where it is considered to have an effect. (Figure 2)
By size of firm:
Table 5: Effect of Availability of Personnel by Firm Size
Availability of Personnel
% of respondents by category
Hinders No Effect Help
Small (less than 20
employees)
21% 38% 41%
Medium (less than 100
employees)
34% 32% 34%
Large (more than 100
employees) 9% 45% 46%
Post-secondary education
Specific skills and a demonstration of the ability to learn are two major characteristics of individuals
with post-secondary education, be it from a technical college or a university. Approximately 40 % of
the working population of British Columbia have some post-secondary education1. Thus firms were
divided into two categories - those with more than 40% of employees with some post-secondary
education and those with less than 40%.
1BC has a higher percentage of workers with post-secondary training than the national average: 37% as opposed to 33% for
Canada as a whole
Innovation and the Management of Human Resources
CPROST Report #00-03 7
Table 6: Employees with Post-secondary Education by Innovativeness
Employees with Post-secondary Education
% of respondents by category
< 40% > 40% sig of c2
New Product or Process in No 61% 39% 0.250
the past five years Yes 48% 52%
New & Unique Product or No 61% 39% 0.008
Process in the past five
years Yes 40% 60%
There is a significant dependency between the number of employees with post-secondary education
and whether the firm has produced a new and unique innovation (figure 3). The dependency
between these two variables using the Oslo definition of innovation is not significant. Interestingly,
there is no dependency (c2 = .85) between having a high percentage of employees with postsecondary
education and training programs in the firm. The presence of well-educated employees
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