Article

The elusive effects of workplace diversity on innovation

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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.

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... In this context, workforce diversity, e.g. in gender, age, national origin, and educational background, has recently emerged as a subject of intense study to explain firm innovation propensity (Laursen et al., 2005;Shore et al., 2009;Bell et al., 2011;García-Martínez, et al., 2017;Bolli et al, 2018;Bogers et al., 2018;Bae and Han, 2019). Nevertheless, empirical evidence analysing the effects of workforce diversity on the technological innovation activity of firms is far from conclusive (Lund and Gjerding, 1996;Ozgen et al., 2017;Lee and Walsh, 2016). ...
... Moreover, following recent contributions on the relationship between educational workforce diversity and firm's innovation behaviour (Østergaard et al., 2011;Secchi et al., 2014;Ozgen et al., 2017;Bolli et al., 2018), we use instrumental variables and panel data techniques (sector and year fixed effects) to control both simultaneity bias and endogeneity problems. This is the best empirical strategy option taking into account the recurrently observed endogeneity problems in the relationship between workforce diversity and innovation, and considering that ...
... Source: Author's elaboration based on Stirling, 1998;Harrison and Klein, 2007;and Ozgen et al., 2017. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Constant Coef -1.077*** -1.066*** -1.464*** -1.090*** -1.149*** -0.904*** -1.437*** -0.956*** -1.686*** -1.803*** -1.697*** -1.285* Constant Coef -1.433*** -1.408*** -1.640*** -1.365*** -1.417*** -1.164*** -1.525*** -1.138*** -2.222*** -2.260*** -1.983*** -1.764* Notes: All columns show Instrumental Variables Probit (IVProbit) estimates for HED for the whole final sample between 2004 and 2015. Robust standard errors (in parentheses) are clusterized at the firm level. ...
Article
Purpose Diversity of people, knowledge and resources has been identified as a determinant of firms' growth. This paper focusses on innovation propensity as a critical dimension of firm's growth path, aiming to analyse the effects of the firm's horizontal educational diversity (HED) on the propensity to conduct different technological innovation activities (TIAs). In addition, considering the evidence showing that these effects are neither direct nor linear, the authors analyse the moderating role of the firm's organizational practices oriented to knowledge sharing (KS) on the association between HED and the adoption of TIAs. Design/methodology/approach Following the theoretical arguments of the resource-based view (RBV), the evolutionary economics and the dynamic capabilities approach and related empirical evidences, the authors proposed four hypotheses regarding the effect of HED on TIAs and the moderating role of work organization practices oriented to promote KS. Empirically, the authors calculated different HED diversity indexes capturing two basic dimensions: variety and balance. Hence, using instrumental variables and panel data techniques to control endogeneity biases, the authors tested the proposed hypotheses using a data set of Uruguayan manufacturing firms between 2004 and 2015. Findings In line with previous evidence, results showed idiosyncratic context effects. The authors found a robust, linear, positive and significant relationship between HED and TIAs, but the effect can only be consistently associated with the adoption of internal or external research and development (R&D) activities. Moreover, the moderating role of work organization practices oriented to promote KS is positive and significant when firms engage in TIAs. For technological innovations that only involve the acquisiton of technology (AT), a positive effect is also observed but always associated to organizational practices oriented to promote KS. Originality/value This paper revisits the analysis of workforce diversity for a relatively less explored context. This research contributes to the field by linking HED and work organization practices to understand firm's innovation propensity in a developing context. Moreover, while other studies have focussed only on top management or R&D team diversity, the authors have analysed the whole professional's workforce. It allows the authors to discuss the effects of diversity on innovation propensity in the light of the ongoing debate on the effects of innovation in employment.
... Measuring diversity is always complex (Stirling, 1998) and the relationship between workforce diversity and innovation performance involves endogeneity problems (Ozgen et al., 2017). To deal with such problems, recent works have used a mix of data from innovation surveys and other administrative sources (Östergaård et al., 2011) or used introduce instrumental variables (Parrotta et al., 2014). ...
... There are many alternatives to measure diversity using different entropy and diversity indices. The literature specialised on diversity measurement has stressed pros and cons of each index and has emphasised the relevance of using multiple indices to check robustness (Ozgen et al., 2017;Harrison and Klein, 2007;Stirling, 2007). ...
Article
This paper analyses the relationship between horizontal educational diversity (HED) and firm innovation performance, both in the propensity to innovate and the intensity of innovation in firm performance. Moreover, we hypothesise that the organizational structure of the firm moderates this relationship. Using panel data from the Uruguayan Innovation Survey 2006-2012, econometric estimates show that HED is barely associated with innovation performance in products and processes. We found that advanced organisational structures of the firm positively moderate the former relationship, but only for firms achieving radical innovations.
... Besides the few multilevel analyses, there are several firm-level studies that investigate the economic effects of cultural diversity at the firm level on productivity or innovation. Ozgen et al. (2017) note that most studies detect a significant correlation between workforce diversity and innovation in pooled or cross-sectional data. However, the authors call this "the elusive effects of workplace diversity on innovation." ...
... Using linked employer-employee data for the Netherlands and employing models with firm fixed effects, they do not find a robust effect of cultural diversity on firm innovation, indicating that the innovation-prone establishments recruit a relatively diverse workforce. Hence, a task for future research is to analyze the relationship between diversity of a firm's workforce and firm performance in more depth through employing various qualitative and quantitative methods as argued by Ozgen et al. (2017). ...
Chapter
Demographic change, immigration, and the increasing labor market participation of women give rise to significant changes in workforce composition and population diversity in many countries. This handbook chapter provides an overview of the literature on the economic effects of population diversity, focusing on the impact of diversity on regional productivity and growth. We first briefly discuss the theoretical arguments that link growth and productivity to diversity. From a theoretical perspective, the net impact of diversity is indeterminate because there are various positive and negative effects attributed to demographic heterogeneity. We then address the measurement of population diversity and discuss the identification of its economic effects. Thereafter, we review the empirical evidence on the relationship between diversity and economic performance. The findings of a rapidly increasing number of studies do not offer a clear-cut answer either. There is some evidence of a positive correlation between diversity and economic performance, but the impact of population diversity seems to be on average quantitatively modest. Moreover, the results of several studies point to heterogeneous effects, in particular with respect to the skill level of the workforce, tasks of the workers and across industries. The heterogeneity of effects raises the question whether mediating factors such as institutions and organizational structures matter in this context. However, little is known so far about the role of mediating factors and the significance of different mechanisms through which population diversity may impact on regional growth.
... Evidence at the firm level is far less clear. Cooke and Kemeny (2017) find a positive effect, while Ozgen et al. (2017) find that diversity does not affect innovation once firm-level fixed effects are included. Most studies assume that only the diversity at the level of the (top) management affects firm strategies and behaviour (Finkelstein and Hambrick, 1990;Knight et al., 1999). ...
... Such a measure basically treats all ethnicities equally, is "color blind" and may fall short of measuring a firm's actual cognitive diversity. Similar considerations apply to other widely used measures of diversity, such as the Shannon-Weaver entropy index, the Simpson index and the co-location index (Ozgen et al., 2017). ...
Article
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Several studies have sought evidence as to whether ethnically diverse teams promote a diversity in knowledge and perspectives which is beneficial for innovation. In multicultural societies, however, there are multiple opportunities for exchange between people from different ethnic backgrounds, and the extent to which such encounters actually imply cognitive diversity seems debatable. We propose to regard as diverse those combinations of ethnic backgrounds that are relatively unlikely to occur under a hypothesis of random allocation to firms, based on the distribution of nationalities at NUTS3 level. We label this measure ``unusualness'' and apply it to the study of innovation in newly founded firms in Germany. Our results reveal that unusualness has a robust positive association with the probability of a start-up introducing an innovation within the first two years of business, while diversity as measured by a standard Blau index is insignificant. The results are robust to a large set of robustness checks. We interpret these results as an indication that not all combinations of national origins matter for innovation, but only those that are associated with differences in cognitive approaches and knowledge.
... Among the different talents, foreign employees with a diverse set of skills are regarded as critical for firms seeking to remain competitive in global markets [2]. Moreover, different scholars considered them to be key factors in the success of many organizations [3]. Reachability to highly educated and skilled global human resources not only helps global firms implement their business strategies but also helps to fill the depleted talent pool of domestic organizations [4] and meet the need for cross-cultural flexible talents [5]. ...
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In recent years, Hungary has seen a dramatic increase in the number of international students, particularly since the government launched a scholarship program to encourage more talented overseas students to study at Hungarian universities. The mobilities of these students have notably increased their participation in part-time jobs or internships in the host country. These work experiences could broaden the perspectives of international students regarding the organizational operation modes in the host country’s firms; moreover, they may impact their ability to interculturally adjust to the host country’s culture, clarifying their intentions to stay or not. This article attempts to find out how perceived organizational support (POS) affects international students’ plans to stay and work abroad (IS), as well as what roles conflict management climate (CMC) and intercultural adjustment (IA) play in this relationship. A linear snowball sampling method was used to collect the data. The study’s sample was taken from international students in Hungary with part-time jobs or internships. A self-administrated questionnaire was distributed to the participants through online channels. The PLS-SEM method was used to empirically test the proposed hypothesis. Later, a total of 433 valid answers were used for the analysis. The results reveal that POS positively and significantly affects CMC and IA but has no significant effect on IS. Moreover, IA is the only factor that has a direct impact on IS and it shows a significant mediating impact on the relationship between POS and IS. The findings contribute to the success of Hungarian organizations in retaining talented young (or soon-to-graduate) employees in their companies by encouraging their intentions to stay in the country.
... The study was done on data collected from two firms in the Netherlands, with a dataset that spanned from 2000 to 2006, and identified the human capital of immigrant workers as well as used the Simpson Index to identify overall diversity in the firms. It was found that innovation has more to do with a firm's scale, performance, external conditions and institutions, and, while innovation is increased by bring in higher skilled and youthful human capital, culture does not seem to have a purely positive or negative correlation to innovation in a firm [4]. ...
... Some studies report that migrants contribute positively to the number of patents and citations in scientific publications in European countries (Bosetti et al. 2015;Gagliardi 2015), whilst other research suggests that this might not always be the case (e.g. Ozgen et al. 2017;Zheng and Ejermo 2015). This mixed result could be due to the different nature of skilled immigration in different locations around Europe (Fassio et al. 2018: 2). ...
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This article investigates how the ownership of firms (affiliates of foreign multinational firms, or uni-national firms) affects their internal workforce composition. We consider this issue empirically by adopting a novel database on the workforce composition of companies operating in the manufacturing industry in north-east Italy. The workforce composition (in terms of skill level, gender and the less investigated characteristics of age and nationality) of affiliates of foreign multinational enterprises (FMNs) are compared with a counterfactual of uni-national firms, constructed using propensity score matching. Consistent with previous studies, the results report that FMNs recruit a larger number of highly-skilled workers. Our main findings show that FMNs employ a lower number of foreign and less experienced (young) workers. The employment of native and more experienced workers in FMNs seems to suggest that foreign companies use domestic ‘inherited’ stock of manufacturing knowledge and skills. By using this stock, they contribute to sustaining its development.
... Today, their foreign workforce is a key success factor for many organizations (Buche et al. 2013;Ozgen et al. 2017), and even economies (Hatton and Williamson 2005; Valverde and Latorre 2019). Highly-skilled foreign employees (or expatriates) especially, no matter whether they are self-initiated expatriates or not, 2 have become crucial for maintaining the competitiveness of many economies, and organizations within globalized economies (Aobdia et al. 2018;Nathan 2014;Tung 2008). ...
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Within Europe, and, indeed, globally, it would seem that for many people a renewed significance now attaches to their national identities. Although ongoing tendencies of re-nationalization and national protectionism are observable in many countries worldwide, management research and organization studies have largely overlooked this phenomenon until now. While previous research on origin-based exclusion in the workplace has primarily focused on “culture” and “race”, this article for the first time, centers on the political concept of “nationality”. Broadening the unidimensional understanding of diversity climates, we derive and validate a two-dimensional nationality-based organizational climate inventory (NOCI), consisting of the distinct dimensions “social exclusion” and “job- and career-related exclusion”. While “social exclusion” has a direct positive impact on the foreign employees’ intention to leave, the positive impact of “job confinement” is mediated by the affected individual’s decline in “organizational commitment”.
... At the firm level, above-average diversity also contributes to higher innovation rates (Lee 2014;Ozgen et al. 2014). This relationship is furthermore found at the regional level, where areas with a higher share of immigrants tend also to be those with the highest innovative output (Poot 2008;Niebuhr 2010;Maré et al. 2014;Ozgen et al. 2015). This emphasizes the advantages of urban environments for innovation, but recent work has shown that firms in the periphery are also able to create diversity and to reap its benefits . ...
Thesis
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The relationship between innovation and space lies at the core of the research agenda in economic geography. Especially the observation that innovative activities and therefore prosperity are spatially clustered, has led to an impressive body of work on the determinants of innovation in such clustered and mostly urban environments. The famous examples of Silicon Valley and Baden-Württemberg have inspired policies all around the world, which aim to achieve innovation through agglomeration. The basic idea is that innovation in core areas will eventually benefit the whole economy and therefore everyone. However, there is increasing discontent with at least three issues. First, innovation occurs also in peripheral and rural areas, which has been often overlooked in innovation studies so far. Second, central and peripheral innovations are often treated exclusively and there is little work investigating urban-rural relationships towards innovation. Third, growing regional disparities suggest that innovation in clusters tends to aggravate these developments, rather than mitigate them. Against this background, this dissertation aims to contribute to contemporary debates within the discipline. It explicitly addresses innovation in peripheral regions and provides theoretical advancements as well as empirical evidence. In doing so, it reviews research on innovation in the periphery, elaborates on the periphery concept, and sheds light on the innovation process of peripheral firms. Hence, it also suggests recommendations for a spatially sensitive innovation policy, which might aim to decrease uneven regional development. The results display that research on innovation in the periphery is increasing, but more efforts are necessary regarding the periphery concept and the comparability of case studies. This dissertation therefore suggests a framework that highlights the strengths and weaknesses of regions towards innovation in detail. Such an understanding that goes beyond the strict poles of the urban and the rural is more appropriate for studying innovation in space. Finally, the case study provides evidence that peripheral innovators have developed a diverse portfolio of strategies for dealing with large distances. In addition to presenting the main findings of the three scientific articles that constitute this dissertation, the framing text at hand includes the overarching research questions, discusses the role of innovation and provides the theoretical background. Furthermore, it introduces the study area, namely Austria, and identifies critical realism as the underlying paradigm. These ontological and epistemological perspectives lead to a methodology that combines both quantitative and qualitative approaches. A summary, conclusions, policy recommendations, and avenues for future research conclude this framing text.
... A study regarding US organizations on the development of careers based on diversity showed that, in interviewing native and non-native English-speaking women, there were challenges in the advancement of career due to verbal misunderstandings or accent [77]. A study in the Dutch administrative field investigated the relationship between workplace diversity and innovation, resulting in a positive partial correlation [78]. The study analyzed the in-and out-group dynamics and the performance and inequalities of wages for minorities. ...
Article
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Approaches to the concept of workforce diversity have developed in recent years. This subject is now under continuous research by specialists in talent management. Simultaneously with the global tightening of COVID-19 restrictions, companies have been imposed upon to support an increasingly higher diversity, thus noticing corporate cultures stimulating communication, innovation, and superior yield results, attracting the best talent. This article analyzes the data obtained through research work targeting the understanding of companies’ orientation toward diversity in the workplace and the assessment of the policies necessary, focusing on four themes: motivation, innovation and creativity, leadership, and social responsibility. Each analyzed variable influenced diversity in the workplace from a significant level (3.33 for motivation) to a high level (4.00 for innovation/creativity and 4.00 for leadership, and 3.71 for social responsibility), showing a genuine interest in Romanian companies supporting diversity in the workplace.
... Just as important as the number of graduate students is the diversity of the student body. The National Science Foundation (NSF), other members of the National Academies, and the US Congress have all spoken to the critical need to cultivate an engineering workforce that represents our entire national population [1-4] By investing in building a robust community of engineers, a school can reap the educational benefits that result from a diverse student body in higher education, where student interactions with those who are different contribute to intellectual self-confidence, engagement, complex thinking, motivation to understand the perspectives of others, citizenship, and motivation to achieve [5][6][7][8][9][10][11] These benefits have been shown to translate into the workplace, where diverse teams have been proven to be better able to tackle today's complex societal challenges [12][13][14][15][16][17][18]. ...
... The diversity paradigm emphasizes the impact of heterogeneity on innovation, highlighting the knowledge spillover and urban buzz are brought about by diversity (Capello and Lenzi, 2018). The impact of cultural or social diversity, racial diversity, sexual diversity, gender diversity, and other factors on the aggregation of creative class and RIP have been examined in literatures (Florida, 2002;Florida et al., 2008;Qian, 2013;Bereitschaft and Cammack, 2015;Ozgen et al., 2017;Wixe, 2018). ...
Article
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With the global economy increasingly dependent on innovation, urban discourse has shifted to consider what kinds of spatial designs may best nurture innovation. We examined the relationship between the built environment and the spatial heterogeneity of regional innovation productivity (RIP) using the example of China's Pearl River Delta (PRD). Based on a spatial database of 522 546 patent data from 2017, this study proposed an innovation-based built environment framework with the following five aspects: healthy environment , daily interaction, mixed land use, commuting convenience, and technology atmosphere. Combining negative binomial regression and Geodetector to examine the impact of the built environment on RIP, the results show that the spatial distribution of innovation productivity in the PRD region is extremely uneven. The negative binomial regression results show that the built environment has a significant impact on the spatial differentiation of RIP, and, specifically, that healthy environment, mixed land use, commuting convenience , and technology atmosphere all demonstrate significant positive impacts. Meanwhile, the Geodetector results show that the built environment factor impacts the spatial heterogeneity of RIP to varying degrees, with technology atmosphere demonstrating the greatest impact intensity. We conclude that as regional development discourse shifts focus to the knowledge and innovation economy, the innovation oriented design and updating of built environments will become extremely important to policymakers.
... With the rise of globalization, a more diverse workforce has evolved and can be readily seen in today's workplace. A diverse workforce is beneficial because it promotes the acquisition of knowledge as well as innovation (Martin, 2014;Ozgen et al., 2017). In the supply chain domain, diversity leads to advantageous outcomes, especially at the supplier stage (Adobor and McMullen, 2007). ...
Article
Supply chain sustainability (SCS) is an approach that takes into consideration the environmental, economic, and social aspects of the supply chain processes, components, technologies, and logistics when designing a supply chain network. The elements that impact SCS encompass all kinds of waste, emissions, green management, workers’ health and well-being, market competitiveness, transportation, and financial aspects of the network. Supply chain experts should integrate sustainability practices in different phases of the supply chain and encourage organizations to orient their efforts toward designing sustainable supply chains. In this study, we present a new metric, “supply chain sustainability index (SCSI)” to assess the overall sustainability of a biomass supply chain network through three criteria: environmental, social, and economic sustainability. To pursue the objective of the study, a Bayesian Network approach is implemented to depict the causal relationship among different variables and to demonstrate a better analysis of the subject. For further assessment and analysis of the overall sustainability of the supply chain network, sensitivity analysis and belief propagation are performed. Results indicate that all three criteria are imperative to SCSI prediction; however, economic sustainability has a slightly higher effect among the three criteria, while social criteria have the lowest effect on SCSI.
... Rather, research on organizational cultural diversity has focused on the impact of cultural diversity and organizational cultural differences on economic effects and sustainable development at the organizational level [16,17]. At the individual level, researchers have focused on the impact of cultural diversity characteristics on employees' work performance and adaptability [18,19]. However, the impact of individual employee cultural diversity management ability on sustainable innovation has not received corresponding attention. ...
Article
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With the in-depth development of globalization, individuals are increasingly embedded in a culturally diverse environment. Effective communication and management ability (Cultural Intelligence) of employees in this type of diverse and heterogeneous environment impacts behavior and performance, affecting the sustainable innovation ability of organizations. Researchers have not yet fully assessed the impact of individuals’ cross-cultural management ability on sustainable innovation. Using Cultural Intelligence Theory and Trait Activation Theory, this paper discusses the influence of individual cultural intelligence on sustainable innovation behavior. The results showed that employees’ cultural intelligence positively affected their sustainable innovation behavior. Employee knowledge sharing plays an mediating role between intelligence and behavior. Differences in organizational culture have a negative moderating effect on the impact of employees’ cultural intelligence on knowledge sharing and sustainable innovation behaviors. The research results provide theoretical guidance for managing organizational cultural diversity and advancing cultural intelligence and sustainable innovation behaviors among employees.
... A similar pattern is found for firm creativity and workforce composition. Using LEED data, Ozgen et al. (2017;2014;, Parrotta et al. (2014a), and Brunow and Stockinger (2013) all show higher worker diversity to be associated with greater firm innovation. Though not accurately comparable, as indicated in Table 2, the magnitudes of the coefficients found in firm-level analyses are rather small. ...
Article
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The empirical evidence on the economic impacts of diversity is mixed. Many studies in the literature present context‐dependent and data‐driven results which are challenging to reconcile with each other. This paper offers a systematic synthesis of the empirical findings on the economic impacts of diversity on innovation, productivity and the labour market. It presents a structured framework which takes the spatial scale of the analysis in the papers as a reference to understand the inconsistency of some previous predictions and the varying magnitudes of the diversity impact. The empirical findings reconcile more meaningfully when diversity effects are documented discretely at the regional, firm and individual levels. The paper further sets out an agenda for future research and links the findings for policy relevance.
... zhao and Li (2021) have maintained that internal migration has a significant positive impact on regional innovation. In their recent publications, Ozgen et al. (2014Ozgen et al. ( , 2017 have demonstrated a positive partial correlation between innovation and cultural diversity at the workplace. The contribution of migration to productivity growth in companies and industries is less clear and may often be negative. ...
Article
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Coastalisation is a widely known concept that builds on the global urbanisation of the world's marine and ocean coasts. In this paper, the degree of coastalisation of the Russian regions is analysed using a variety of parameters, including population numbers and gross regional products, indicating the accumulation of human activity in the coastal regions against the less densely populated inland territories. This research shows that coastalisation is expected to continue, making coastal regions the most attractive for international and interregional migration, hence their high innovation performance. Based on the principles of human geography, we put forward the hypothesis that Russia's coastal territories are highly heterogeneous in their development dynamics. This study aims to test the interdependence between migration figures and innovation values across 23 regions of Russia with access to the sea. The research design comprises three stages: calculation of innovation performance, evaluation of migration flows and the building up of a typology of coastal regions. The research results reveal an increased migration attractiveness of the country's coastal regions, with the St. Petersburg and Kaliningrad agglomerations and the Black Sea coast of the Krasnodar Krai (region) as the main attractors. Intensive innovation activity is characteristic of St. Petersburg, the northern capital of Russia, whereas peripheral regions where the extractive industries dominate (the Yamalo-Nenets Autonomous Okrug (district), Kamchatka, Krasnoyarsk and Magadan regions) demonstrate a much weaker trend towards combining innovation performance and migration attractiveness.
... A migração tende a aportar benefícios para os próprios sujeitos que a protagonizam, mas também para os contextos de acolhimento destes fluxos populacionais, sendo que os imigrantes, em particular os mais qualificados, estimulam o crescimento da atividade económica local e regional, criam empregos locais como novos empresários (Ghosh & Mastromarco, 2018;Müller, 2006;Szabo et al., 2018) e podem assumir-se como relevantes agentes de desenvolvimento (Bosworth & Finke, 2020;Mitchell & Shannon, 2017;Naudé, Siegel, & Marchand, 2017) 4 . Em muitos casos, exercem mesmo uma notória influência nas comunidades para onde se deslocam em termos de inovação (Fassio, Montobbio, & Venturini, 2019;Gretter, Torre, Maino, & Omizzolo, 2019;Ozgen, Nijkamp, & Poot, 2017). Ora, este não é um efeito menor se considerarmos que a capacidade de inovação é reconhecida, atualmente, como um dos principais determinantes do aumento de produtividade, competitividade e sustentabilidade das empresas, das regiões e dos países (Hall, 2011;Kolehmainen, Irvine, Stewart, Karacsonyi, Szabó, Alarinta, & Norberg, 2016;Mitra, 2019). ...
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Resumo: A análise teórica desenvolvida centra-se nos contributos conceptuais e de pesquisa empírica mais relevantes sobre os fluxos migratórios que, associados a determinadas atividades, projetos e estilos de vida, são atraídos pelas condições existentes nas áreas rurais. Esta análise é guiada por quatro questões: (i) quais as imagens, possibilidades e recursos que conferem atratividade migratória aos territórios rurais? (ii) quem são os migrantes que se deslocam para o campo e quais as suas razões e motivações? (iii) qual a relação destas migrações com processos de inovação e empreendedorismo? (iv) em que medida e de que forma os fluxos de neo-rurais proporcionam processos de gentrificação? A revisão apoia-se em artigos e livros indexados nas bases Scopus e Web of Science, sendo complementada com a análise de obras não indexadas, mas de referência. Como resultado, constatou-se que o neo-ruralismo empreendedor é protagonizado por indivíduos que deixam os centros urbanos motivados pela procura de novos estilos de vida e/ou por oportunidades de desenvolver determinadas atividades económicas. Neste processo, tendem a fomentar a inovação, processos de desenvolvimento local e, não raramente, a gentrificação dos contextos rurais.
... There is important related work on the impacts of high-skill immigrants on productivity, wages, employment and innovation, seeKerr (2013) andLewis and Peri (2014) for detailed reviews. Again, there is closely related work with innovation as the outcome of interest(Parrotta et al., 2014;Ozgen et al., 2014;Brunow and Stockinger, 2015;Ozgen et al., 2015;Solheim and Fitjar, 2016). ...
Article
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Increasing immigrant diversity, both in the number of immigrants and the diversity of sending countries, is helping reshape the economic landscape in many countries, most notably in their urban regions. This paper provides a succinct introduction to the existing research on the economic effects, particularly productivity, of immigrant diversity, focusing on a recent wave of empirical work. It identifies outstanding questions in the research, offering several ways to push current lines of inquiry ahead and suggesting areas as yet underexplored. To motivate these new directions for geographers to pursue, it presents empirical results that raise more questions than they answer. In doing so, it sets the stage for future work that can generate a deeper understanding of the role of immigrant diversity in shaping economic welfare in cities.
... Research on group diversity in the workplace is very inconclusive about whether it improves group performance or not (cf. Christian, Porter and Moffitt 2006;Ozgen, Nijkamp and Poot 2015) and while I do not aim to contribute to the expansive literature on diversity in the workplace, I found that most (if not all) co-workers loved working in this multicultural environment, despite its myriad problems and conflicts. At the clinic, the alliances and friendships that formed over the course of the year were not following ethnic or religious lines, but were more focusing on their place within the organisation. ...
Thesis
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This thesis investigates the ways in which a transcultural mental healthcare clinic in the Netherlands faces various challenges. Using rhetoric culture theory as the main theoretical framework, it looks at aspects of the organisation and its quality control system through examples derived from participant observation. The research shows that the quality control system is open to interpretation and that culture is an important aspect of the organisation. It also shows that there is disparity in power between both insurance companies and the state on the one hand, and the healthcare providers on the other. In this thesis, further attention is given to the particular way the clinic was organised, whereby people close to the board were given management positions thanks to kin-like relationships. This led to a division among staff which came to the fore during frequent conflicts and arguments. Another aspect that is highlighted in the thesis is the way audits produce stress, anxiety and even panic among staff and have not significantly increased the quality of care at the clinic.
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This paper studies the effects of skilled migration on innovation –proxied by patent citations- in European industries between 1994 and 2005, using the French and the UK Labour Force Surveys and the German Microcensus. Highly-educated migrants have a positive effect on innovation, but the effect differs across industries. It is stronger in industries with low levels of overeducation, high levels of FDIs and openness to trade and, finally, in industries with higher ethnic diversity. The aggregate effect of the skilled immigrant is about one third the one of the skilled natives. We tackle the endogeneity of migrants with a set of external and internal instruments.
Chapter
Gender Diversity in organizations is attracting a significant degree of attention from multiple sectors in the LAC region. One of the reasons for its relevance is the lack of consensus about its true impact on organizational performance indicators. At best, there are conflicting and inconclusive results. In order to better understand the relationship between gender diversity and innovation in LAC, this chapter presents a comparative study with data of the World Bank Enterprise Survey from seven Latin American countries. The chapter suggests that the association between the participation of women in management positions and organizational performance in general—and in Latin America and the Caribbean in particular—remains a topic of diversity and inclusion that requires further research.
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The growing number of international students coming to China has injected new vitality into the development of an innovative economy in the mainland. In this paper, we employ a panel fixed‐effect model to examine how international students affect China's technological innovation. Our paper finds that international students in China have significantly promoted urban innovation in China, reflected not only in the expansion of urban innovation scale but also in the improvement of the urban patent structure and innovation quality. This highlights the need to increase the scale of international education and improve the quality of international education.
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We investigate the speed at which clusters of invention for a technology migrate spatially following breakthrough inventions. We identify breakthrough inventions as the top 1% of US inventions for a technology during 1975–1984 in terms of subsequent citations. Patenting growth is significantly higher in cities and technologies where breakthrough inventions occur after 1984 relative to peer locations that do not experience breakthrough inventions. This growth differential in turn depends on the mobility of the technology’s labor force, which we model through the extent that technologies depend upon immigrant scientists and engineers. Spatial adjustments are faster for technologies that depend heavily on immigrant inventors. The results qualitatively confirm the mechanism of industry migration proposed in models like Duranton [Duranton, G., 2007. Urban evolutions: The fast, the slow, and the still. American Economic Review 97, 197–221].
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In 1961, Nicholas Kaldor highlighted six "stylized" facts to summarize the patterns that economists had discovered in national income accounts and to shape the growth models being developed to explain them. Redoing this exercise today shows just how much progress we have made. In contrast to Kaldor's facts, which revolved around a single state variable, physical capital, our updated facts force consideration of four far more interesting variables: ideas, institutions, population, and human capital. Dynamic models have uncovered subtle interactions among these variables, generating important insights about such big questions as: Why has growth accelerated? Why are there gains from trade? (JEL D01, E01, E22, E23, E24, J11)
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[eng] Transportation costs and monopoly location in presence of regional disparities. . This article aims at analysing the impact of the level of transportation costs on the location choice of a monopolist. We consider two asymmetric regions. The heterogeneity of space lies in both regional incomes and population sizes: the first region is endowed with wide income spreads allocated among few consumers whereas the second one is highly populated however not as wealthy. Among the results, we show that a low transportation costs induces the firm to exploit size effects through locating in the most populated region. Moreover, a small transport cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. [fre] Cet article d�veloppe une statique comparative de l'impact de diff�rents sc�narios d'investissement (projet d'infrastructure conduisant � une baisse mod�r�e ou � une forte baisse du co�t de transport inter-r�gional) sur le choix de localisation d'une entreprise en situation de monopole, au sein d'un espace int�gr� compos� de deux r�gions aux populations et revenus h�t�rog�nes. La premi�re r�gion, faiblement peupl�e, pr�sente de fortes disparit�s de revenus, tandis que la seconde, plus homog�ne en termes de revenu, repr�sente un march� potentiel plus �tendu. On montre que l'h�t�rog�n�it� des revenus constitue la force dominante du mod�le lorsque le sc�nario d'investissement privil�gi� par les politiques publiques conduit � des gains substantiels du point de vue du co�t de transport entre les deux r�gions. L'effet de richesse, lorsqu'il est associ� � une forte disparit� des revenus, n'incite pas l'entreprise � exploiter son pouvoir de march� au d�triment de la r�gion l
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Using the 2003 National Survey of College Graduates, I examine how immigrants perform relative to natives in activities likely to increase U.S. productivity, according to the type of visa on which they first entered the United States. Immigrants who first entered on a student/trainee visa or a temporary work visa have a large advantage over natives in wages, patenting, commercializing or licensing patents, and publishing. In general, this advantage is explained by immigrants' higher education and field of study, but this is not the case for publishing, and immigrants are more likely to start companies than natives with similar education. Immigrants without U.S. education and who arrived at older ages suffer a wage handicap, which offsets savings to the United States from their having completed more education abroad. Immigrants who entered with legal permanent residence do not outperform natives for any of the outcomes considered.
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We follow the careers 1981-2004 of 5401 star scientists listed in ISI HighlyCitedSM as most highly cited by their peers. Their number in a US region or a top-25 science and technology (S&T) country significantly increases the probability of firm entry in the S&T field in which they are working. Stars rather than their disembodied discoveries are key for high-tech entry. Stars become more concentrated over time, moving disproportionately from areas with few peers in their discipline to many, except for a countercurrent of some foreign-born American stars returning home. High impact articles and university articles all tend to diffuse. America has 62 percent of the world’s stars as residents, primarily because of its research universities which produce them. Migration plays a significant role in some developing countries.
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Applied economists have long struggled with the question of how to accommodate binary endogenous regressors in models with binary and nonnegative outcomes I argue here that much of the difficulty with limited dependent variables comes from a focus on structural parameters, such as index coefficients, instead of causal effects. Once the object of estimation is taken to be the causal effect of treatment, several simple strategies are available. These include conventional two-stage least squares, multiplicative models for conditional means, linear approximation of nonlinear causal models, models for distribution effects, and quantile regression with an endogenous binary regressor. The estimation strategies discussed in the article are illustrated by using multiple births to estimate the effect of childbearing on employment status and hours of work.
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We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on communities of different size and organizational structure, such as countries, cities in developed countries, and villages and groups in developing countries. We also consider the endogenous formation of political jurisdictions and highlight several open issues in need of further research, in particular the endogenous formation of ethnic identity and the measurement of ethnic diversity.
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This paper uses a natural experiment approach to identify the effects of an exogenouschange in future pension benefits on workers’ training participation. We use uniquematched survey and administrative data for male employees in the Dutch public sectorwho were born in 1949 or 1950. Only the latter were subject to a major pension reformthat diminished their pension rights. We find that this exogenous shock to pension rightspostpones expected retirement and increases participation in training courses amongolder employees, although exclusively for those employed in large organizations.
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Does Immigration Grease the Wheels of the Labor Market? MOST STUDIES OF the economic impact of immigration are motivated by the desire to understand how immigrants affect various dimensions of economic status in the population of the host country. This motivation explains the persistent interest in determining whether immigrants “take jobs away” from native workers, as well as the attention paid to measuring the fiscal impact that immigration inevitably has on host countries that offer generous welfare benefits.1 For the most part, the existing literature overlooks the factor that places immigration issues and the study of labor mobility in general at the core of modern labor economics. The analysis of labor flows, whether within or across countries, is a central ingredient in any discussion of labor market equilibrium. Presumably, workers respond to regional differences in economic opportunities by voting with their feet, and these labor flows improve labor market efficiency. In this paper I emphasize this different perspective to analyzing the economic impact of immigration: immigration as grease on the wheels of the 69 GEORGE J. BORJAS Harvard University I am grateful to Donald Davis, Richard Freeman, Edward Glaeser, Daniel Hamermesh, Lawrence Katz, Dani Rodrik, Mark Rosenzweig, Robert Shimer, Robert Topel, Steven Trejo, and Andrew Weiss for helpful comments, and to the Smith Richardson Foundation and the National Science Foundation for research support. 1. Borjas (1999b), Friedberg and Hunt (1995), and LaLonde and Topel (1997) survey this voluminous literature. Recent studies of the impact of immigration on native labor market opportunities include Borjas, Freeman, and Katz (1997), Card (2001), and Schoeni (1997); recent studies of the fiscal impact of immigration include Borjas and Hilton (1996), Smith and Edmonston (1997), and Storesletten (2000). 0099—02 BPEA /Borjas 7/3/01 12:16 Page 69 labor market. Labor market efficiency requires that the value of the marginal product of workers be equalized across labor markets, such as U.S. metropolitan areas, states, or regions. Although workers in the United States are quite mobile, particularly when compared with workers in other countries, this mobility is insufficient to eliminate geographic wage differentials quickly. The available evidence suggests that it takes around thirty years for the equilibrating flows to cut interstate income differentials by half.2 I argue that immigration greases the wheels of the labor market by injecting into the economy a group of persons who are very responsive to regional differences in economic opportunities.3 My empirical analysis uses data drawn from the 1950–90 U.S. censuses to analyze the link between interstate wage differences for a particular skill group and the geographic sorting of immigrant and native workers in the United States. The evidence shows that interstate dispersion of economic opportunities generates substantial behavioral differences in the location decisions of immigrant and native workers. New immigrant arrivals are much more likely to be clustered in those states that offer the highest wages for the types of skills that they have to offer. In other words, new immigrants make up a disproportionately large fraction of the “marginal” workers who chase better economic opportunities and help equalize opportunities across areas. The data also suggest that wage convergence across geographic regions is faster during high-immigration periods. As a result, immigrant flows into the United States may play an important role in improving labor market efficiency. The paper presents a simple theoretical framework for calculating this efficiency gain from immigration. Simulation of this model suggests that the efficiency gain accruing to natives in the United States—between $5 billion and $10 billion annually—is small relative to the overall economy, but not relative to earlier estimates of the gains from immigration (which are typically below $10 billion). It seems, therefore, that the measurable benefits from immigration are significantly magnified when estimated in the context of an economy with regional differences in marginal product, rather than in the context of a one-region aggregate labor market. 70 Brookings Papers on Economic Activity, 1:2001 2. Barro and Sala-i-Martin (1991, 1992); Blanchard and Katz (1992). 3. The analysis is similar in spirit to Card and Hyslop’s (1997) investigation of the hypothesis that inflation greases the wheels of the labor market by making...
Is OLS with a binary dependent variable really OK? Estimating (mostly) TSCS models with binary dependent variables and fixed effects Department of Politics
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Niebuhr A, Peters C (2012) Labour diversity and firm's innovation: Evidence from Germany. Working Paper. IAB Institute for Employment Research, Nuremburg