TY - JOUR
T1 - The Nexus Between Labor Diversity and Firm’s Innovation
AU - Parrotta, Pierpaolo
AU - Pozzoli, Dario
AU - Pytlikova, Mariola
PY - 2014
Y1 - 2014
N2 - In this paper, we investigate the nexus between firm labor diversity and innovation by using data on patent applications filed by firms at the European Patent Office and a linked employer–employee database from Denmark. Exploiting the information retrieved from these comprehensive data sets and implementing proper instrumental variable strategies, we estimate the contribution of workers’ diversity in cultural background, education and demographic characteristics to valuable firm’s innovation activity. Specifically, we find evidence supporting the hypothesis that ethnic diversity may facilitate firms’ patenting activity in several ways by (a) increasing the propensity to (apply for a) patent, (b) increasing the overall number of patent applications, and (c) by enlarging the breadth of patenting technological fields, conditional on patenting. Several robustness checks corroborate the main findings.
AB - In this paper, we investigate the nexus between firm labor diversity and innovation by using data on patent applications filed by firms at the European Patent Office and a linked employer–employee database from Denmark. Exploiting the information retrieved from these comprehensive data sets and implementing proper instrumental variable strategies, we estimate the contribution of workers’ diversity in cultural background, education and demographic characteristics to valuable firm’s innovation activity. Specifically, we find evidence supporting the hypothesis that ethnic diversity may facilitate firms’ patenting activity in several ways by (a) increasing the propensity to (apply for a) patent, (b) increasing the overall number of patent applications, and (c) by enlarging the breadth of patenting technological fields, conditional on patenting. Several robustness checks corroborate the main findings.
KW - Labor diversity
KW - Ethnic diversity
KW - Patenting activity
KW - Extensive and intensive margins
U2 - 10.1007/s00148-013-0491-7
DO - 10.1007/s00148-013-0491-7
M3 - Journal article
VL - 27
SP - 303
EP - 364
JO - Journal of Population Economics
JF - Journal of Population Economics
SN - 0933-1433
IS - 2
ER -