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Ethnic diversity in start-ups and its impact on innovation

Udo Brixy (), Stephan Brunow and Anna D''Ambrosio

No 201725, IAB Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "The study analyses the impact of different ethnic compositions of start-ups in Germany on the innovativeness of the new businesses. We are able to distinguish between the ethnicity of the founders and that of the early employees following new results that demonstrate the importance of including all new firms' stakeholders for the firm's success. We make use of a measure introduced by Ruef (2002) and Ruef et al. (2003) which not only takes into account the number of different ethnicities involved, but also includes the unusualness of the ethnic compositions. Our results first reveal that foreigners are an important source of both entrepreneurs and employers. Second, we can show that only really rare combinations, of the founders and employees together, lead to more innovative businesses whereas the more common minorities are even found to have a negative impact on firms' innovativeness." (Author's abstract, IAB-Doku) ((en))

Keywords: Beschäftigtenstruktur; Heterogenität - Auswirkungen; Innovationsfähigkeit; Ausländerquote; ausländische Arbeitnehmer; Produktivitätseffekte; Arbeitsproduktivität; Unternehmensgründung; Unternehmer; ethnische Gruppe; Herkunftsland; Nationalität; Inländer; ausländische Arbeitgeber (search for similar items in EconPapers)
JEL-codes: J15 J21 L26 M13 M14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ent, nep-eur, nep-ino, nep-lma and nep-sbm
Date: 2017-08-03
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201725

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