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- Title
The elusive effects of workplace diversity on innovation.
- Authors
Ozgen, Ceren; Nijkamp, Peter; Poot, Jacques
- Abstract
We investigate econometrically whether cultural diversity at the workplace boosts innovation. Our longitudinal linked employer-employee data combines two innovation surveys, with Dutch administrative, tax and regional data. We analyse the determinants of a firm's product and process innovations with respect to the firm's internal resources, employee composition and regional agglomeration externalities. We reconfirm the findings of several other recent studies showing a positive partial correlation between innovation and cultural diversity in pooled cross-sectional data; in some cases even when accounting for reverse causation. However, no statistically significant traces of benefit for innovation from cultural diversity remain after introducing firm fixed effects.
- Subjects
NETHERLANDS; DIVERSITY in the workplace; ECONOMIES of agglomeration; INDUSTRIES; TECHNOLOGICAL innovations; EMPLOYEES
- Publication
Papers in Regional Science, 2017, Vol 96, pS29
- ISSN
1056-8190
- Publication type
Article
- DOI
10.1111/pirs.12176