Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses

McGuirk, Helen; Jordan, Declan

doi:10.1080/09654313.2012.722918

Cited by 24 publications

(25 citation statements)

References 59 publications

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“…In reality, a myriad o f factors, including culture, nationality, ethnicity, age, language, lifestyle, education, religion, and gender, may collectively shape diversity as a notional resource. Thus, the use o f singular dimensions risks imperfectly capturing the inherent complexities that are associated with diversity (McGuirk and Jordan, 2012). Whilst most measures based on these different dimensions are likely to be highly correlated, there are also important dissimilarities.…”

Section: Hypothesis H2 the Connection Between Diversity And Entreprementioning

confidence: 99%

Cultural Diversity and Entrepreneurship in England and Wales

Rodríguez‐Pose

Hardy

2015

Environ Plan A

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British regions are becoming increasingly culturally diverse, with migration as the main driver. Does this diversity benefit local economies? This research examines the impact of cultural diversity on the entrepreneurial performance of UK regions. We focus on two largely overlooked factors: the measurement of diversity and the skills composition of diverse populations. First, more than demonstrating the importance of cultural diversity for entrepreneurship, we show that the type of cultural diversity measured is a decisive factor. Second, the skill composition of diverse populations is also key. Diversity amongst highly skilled workers exerts the strongest impact upon start-up intensities. The empirical investigation employs spatial regression techniques and carries out several robustness checks, including instrumental variables specifications, to corroborate our findings.

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Section: Hypothesis H2 the Connection Between Diversity And Entreprementioning

confidence: 99%

Cultural Diversity and Entrepreneurship in England and Wales

Rodríguez‐Pose

Hardy

2015

Environ Plan A

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“…This is particularly true regarding the expectation that the share of academics is positively related to innovation activities (see, e.g., McGuirk and Jordan, 2012). From this perspective, it is surprising that the estimates for the share of workers with professional tertiary education (Share Advanced) and conventional university tertiary education (Share Acad) remain insignificant in the fixed effects logit estimations, though their estimated marginal effects remain positive.…”

Section: Resultsmentioning

confidence: 69%

“…Fourth, we provide the first evidence for Switzerland, thereby extending the scant existing empirical literature that analyzes Danish (Østergaard et al, 2011, andParrotta et al 2014) and Irish firms (McGuirk and Jordan, 2012). Switzerland is a particularly interesting case due to its strong vocational and professional education system (OECD 2010, Hoffman andSchwartz 2015).…”

Section: Introductionmentioning

confidence: 87%

“…Neither theory nor empirical investigations are clear on the influence of vertical educational diversity on the innovation performance of firms. While, for example, Østergaard et al (2011) identify a positive relationship between educational diversity and the propensity to innovate, McGuirk and Jordan (2012) cannot confirm the positive relationship for process innovations, and Parrotta et al (2014) find little evidence that educational diversity affects the patenting propensity or the patenting intensity of firms. The econometric challenges, the specificities of the countries analyzed, the comprehensiveness of the data, or the fact that the innovation process is largely collapsed into a single stage, might be reasons for the inconclusive results on the diversity-innovation relationship.…”

Section: Introductionmentioning

confidence: 94%

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Vertical Educational Diversity and Innovation Performance

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper uses panel data of Swiss firms to analyze the impact of education-level diversity in the workforce on innovation performance, addressing endogeneity by exploiting within-firm variation as well as variation in labor supply across regions. We find that vertical educational diversity increases the extensive margin of R&D and product innovation, particularly new product innovation. However, the relationship with process innovation, R&D intensity, and product innovation intensity is insignificant or even negative. These results are in line with the idea that vertical educational diversity enhances the creative moment of the invention phase, while it might affect the commercialization phase negatively due to the dominance of coordination and communication costs relative to the gains in creativity. JEL: O3Keywords: Vertical educational diversity, innovation performance, R&D, product innovation, process innovation Acknowledgements: We thank the participants of the 15 th ISS Conference, the KOF-UZH Seminar and the KOF Brown Bag Seminar for helpful comments and suggestions.

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“…However, Ozgen et al (2014) also find that when firms from two countries are analysed (Germany and the Netherlands) the effect of diversity on innovation at the firm level varies considerably according to the specific country and according to the econometric specification chosen. McGuirk and Jordan (2012), using data from Irish firms, find a positive effect for the diversity of immigrants on the probability of introducing product innovations. However, the diversity index is not measured at the firm level among the employees of each firm, but at the regional level.…”

Section: Background Literaturementioning

confidence: 99%

Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital

Fassio¹,

Kalantaryan

Venturini

2015

SSRN Journal

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Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital 1The objective of this paper is to analyse the role of migrants in innovation in Europe. We use Total Factor Productivity as a measure of innovation and focus on the three largest European countries -France, Germany and the United Kingdom -in the years 1994-2007. Unlike previous research, which mainly employs a regional approach, we analyse the link between migration and innovation at the sectoral level. This allows us to measure the direct contribution of migrants in the sector in which they are actually employed. Moreover, it allows a distinction between the real contribution of migrants to innovation from possible intersectoral complementarities, which might as well foster innovation. We control for the different components of human-capital, such as age, education and diversity of origin. To address the possible endogeneity of migration we draw on an instrumental variable strategy originally devised by Card (2001) and adapt it at the sector level. The results show that overall migrants are relevant in all sectors, but some important differences emerge across sectors: highly-educated migrants show a larger positive effect in the high-tech sectors, while middleand low-educated ones are more relevant in manufacturing. The diversity of countries of origin contributes to innovation only in the services sectors, confirming that in empirical analyses at the regional or national level the diversity measure might capture the complementarity between sectors rather than the contribution of different national skills. JEL Classification:F22, F66, O31, O32

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Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses

Cited by 24 publications

References 59 publications

Cultural Diversity and Entrepreneurship in England and Wales

Cultural Diversity and Entrepreneurship in England and Wales

Vertical Educational Diversity and Innovation Performance

Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital

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