This paper investigates the effect of employee diversity in terms of gender, age, ethnicity and education on the firm’s likelihood of introducing an innovation. The analysis draws on data from a recent innovation survey. This data is merged with a linked employer-employee dataset that allow us to identify the employee composition of each firm. We test the hypothesis that employee diversity is associated with better innovative performance. The econometric analysis reveals positive, negative and non-significant effects of the different employee characteristics on the likelihood of introducing an innovation.
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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number
09-03.