This paper estimates the causal impact of PhD programs, designed to train individuals to advance the frontier of knowledge, on innovation. I exploit the centrally planned and staggered rollout of doctoral programs across Italian universities and construct a new dataset linking program openings to local patenting activity. The introduction of PhD programs increased patenting by 21% between 1986 and 2001. Using admission exam scores in a regression discontinuity design, I show that about 22% of this effect is direct and driven by the increased patenting of program graduates, while most of the remainder reflects spillovers to local firms. These findings indicate that PhD programs stimulate technological progress both by increasing graduates’ inventive output and by strengthening the surrounding innovation ecosystem. A cost–benefit analysis based on patent valuations suggests that the social return to these programs exceeds total costs by at least 46%. Finally, I estimate that PhD programs raised Italy’s GDP by 0.6% to 4.7% over the same period.

Skills acquired on the job, whether general or industry-specific, significantly influence workers' labor market outcomes. Workers with general skills tend to have higher re-employment prospects and greater resilience to economic shocks. Using novel data from a recent policy intervention in the Italian labor market, we develop a new measure that captures the tasks taught in firm-provided training for individual workers. This measure enables us to examine the relationship between labor market competition and firms' decision to invest in general versus industry-specific skills. Our findings indicate that, as theory predicts, workers in more competitive labor markets receive less general training.

This study examines the impact of digital technology adoption on Italian firms’ performance and workforce composition. Analyzing 2011–2020 data, we focus on six technologies categorized as “information” (e.g., Big Data, Cloud Computing) and “operation” (e.g., Robots, IoT). Employing synthetic difference-in-differences methods, we find that adoption increases sales by 5% and employment by 1% for both technologies. Workforce composition effects vary: information technologies raise the share of older graduates and younger non-graduates, while operation technologies increase young, non-graduate workers without significantly altering the overall educational mix. These findings suggest that digital technology adoption enhances firm productivity but may reinforce existing skill polarization, offering limited benefits to highly educated young workers and potentially reducing opportunities for older, less-educated employees, while operation technology adoption has more muted effects on the skill composition.