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The Nexus between Labor Diversity and Firm´s Innovation

Pierpaolo Parrotta (), Dario Pozzoli () and Mariola Pytlikova ()

No 10-15, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: This paper investigates the nexus between labor diversity and innovation in a population of Danish rms. Specically, exploiting information retrieved from a comprehensive linked employer-employee database and implementing a proper instrumental variable strategy, we are able to identify the contribution of diversity in cultural background, skills and demographic characteristics to valuable rm's innovation activity. The latter is measured by: (1) the rm's propensity to apply for a patent, (2) the number of patent applications (intensive margin) and (3) the rm's ability to patent in dierent technological areas (extensive margin). We nd that skill diversity plays a key role in propelling rm's innovation outcomes. The positive inuence of heterogeneity in the ethnic dimension turns to be not negligible, too. Conversely, the eect of demographic diversity typically vanishes once detailed rm specic characteristics are included as control variables

Keywords: Labor diversity; patenting activity; extensive and intensive margins (search for similar items in EconPapers)
JEL-codes: C23 J24 L20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~ and nep-mic
Date: 2010-11-01
Note: Published as: Parrotta, P., Pozzoli, D. and M. Pytlikova (2013): "The Nexus between Labor Diversity and Firm's Innovation." Journal of Population Economics (IF 1.336). Currently published as Online First: http://www.springerlink.com/openurl.asp?genre=article&id=doi:10.1007/s00148-013-0491-7
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Related works:
Journal Article: The nexus between labor diversity and firm’s innovation (2014) Downloads
Working Paper: The Nexus between Labor Diversity and Firm's Innovation (2012) Downloads
Working Paper: The Nexus between Labor Diversity and Firm's Innovation (2011) Downloads
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