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Newborn Firms and Regional Diversification Patterns: The Role of Cultural Diversity

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  • Alessandra Colombelli
  • Anna D’Ambrosio
  • Valentina Meliciani
  • Francesco Quatraro

Abstract

We blend the economics of diversity and evolutionary economic geography theories and study the relationship between the cultural diversity of foreign-born entrepreneurs and regional sectoral diversification, proxied by the sectoral variety of newborn firms. We focus on Italian evidence and use a unique data set that stems from a combination of different sources of information, including the Union of the Chambers of Commerce, the OECD, and the National Institute of Statistics. The results confirm that cultural diversity of entrepreneurs is associated with greater sectoral variety of newborn firms, with an imbalance in favor of variety in unrelated activities vis-à-vis related ones.

Suggested Citation

  • Alessandra Colombelli & Anna D’Ambrosio & Valentina Meliciani & Francesco Quatraro, 2020. "Newborn Firms and Regional Diversification Patterns: The Role of Cultural Diversity," Economic Geography, Taylor & Francis Journals, vol. 96(4), pages 336-362, August.
    • Handle: RePEc:taf:recgxx:v:96:y:2020:i:4:p:336-362
    DOI: 10.1080/00130095.2020.1807320
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    Cited by:

    1. Claudio Berardino & Dario D’Ingiullo & Donatella Furia & Alfredo Cartone, 2021. "Immigration diversity and regional economic growth," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 863-886, October.
    2. Alba Marino & Francesco Quatraro, 2023. "Leveraging global recombinant capabilities for green technologies: the role of ethnic diversity in MNEs’ dynamics," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1413-1445, August.

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