Higher education structure and firm innovation: Theoretical mechanisms and cross‐national evidence

Abstract This paper examines the relationship between higher education structure and firm innovation. By drawing on and expanding Schumpeterian growth theory, we analyze this underlying mechanism and conduct empirical tests using a cross‐national survey database of 9,230 firms from 30 countries. The empirical results show that a higher education structure, exhibiting a heightened inclination towards fundamental disciplines such as mathematics and natural sciences (the percentage of graduates in these disciplines), is more conducive to fostering firm innovation. This innovation‐promoting effect is more noticeable in domestic and established enterprises and varies in accordance with a country's institutional conditions. This paper provides new insights into the study of the impact of higher education structure on firm innovation.