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This paper aims to focus on the effects of human capital composition, innovation portfolio and size on manufacturing firms’ performance. Moreover, it seeks to empirically identify the levels of education that are significant in labour productivity.

The resource-based view (RBV) theory is applied using data gathered from the National Innovation Survey in the Manufacturing Industries of Peru. Using the ordinary least squares method on a sample of 584 Peruvian manufacturing firms, the effects on firm performance of two subsamples according to innovation portfolio and firm size are determined.

The direct effects of human capital composition on productivity show that the higher the workers’ educational level, the higher the productivity. However, if this relationship is analysed in terms of the innovation portfolio, the authors find that labour productivity in companies with product …