Measuring cultural diversity and its impact on innovation: Longitudinal evidence from Dutch firms

Arbeitspapier

To investigate econometrically whether cultural diversity of a firm's employees boosts innovation, we create a unique linked employer-employee dataset that combines data from two innovation surveys in The Netherlands with administrative and tax data. We calculate three distinct measures of diversity. We find that firms that employ fewer foreign workers are generally more innovative, but that diversity among a firm's foreign workers is positively associated with innovation activity. The positive impact of diversity on product or process innovations is greater among firms in knowledge-intensive sectors and in internationally-oriented sectors. The impact is robust to accounting for endogeneity of foreign employment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7129

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Empirical Analysis ; International Migration ; Innovation and Invention: Processes and Incentives
• Subject: immigration ; innovation ; cultural diversity ; knowledge spillovers ; linked administrative and survey data ; Diversity Management ; Interkulturelle Kompetenz ; Innovation ; Migranten ; Wissenstransfer ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ozgen, Ceren ; Nijkamp, Peter ; Poot, Jacques
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/69390
• Last update: 30.03.2025, 7:44 AM CEST