Human Capital Allocation and Enterprise Innovation Performance: An Example of China's Knowledge-Intensive Service Industry

This paper examines the impact of human capital mismatch on the innovation performance of knowledge-intensive service enterprises. Taking China's knowledge-intensive service industries (KISI) as our research object, we construct a human capital allocation measurement framework to evaluate the current state of human capital allocation of sub-industries in China using the 2007 and 2013 Chinese Household Income Project data and Chinese A-share listed company data. Results show that human capital mismatch do exist in China's knowledge-intensive service industries, which exerts inhibitory effect on the innovation performance of KISI enterprises. We further find that such an effect varies with regions and industries. Our study aims to provide useful reference for relevant departments in stimulating innovation and accelerating market reform.

Automated summary

This study found that human capital mismatch exists in China's knowledge-intensive service industries, exerting inhibitory effect on the innovation performance of enterprises, with varying impacts across regions and industries. The research aims to provide useful reference for relevant departments in stimulating innovation and accelerating market reform.