Firm Knowledge, Neighborhood Diversity and Innovation
AbstractThis paper tests the importance of firm level knowledge and neighborhood diversity, as a source for localized knowledge spillovers, on firms propensity to innovate. Diversity is measured in terms of industries as well as employee education and occupation, of which the results show a positive neighborhood effect from diversity in education. In addition, an added positive effect from neighborhood diversity in education is found for firms with a larger share of highly educated employees, which points to the importance of absorptive capacity. However, firm characteristics, such as the knowledge of the own employees, provide to be the strongest determinants for the innovativeness of firms.
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Bibliographic InfoPaper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 360.
Length: 34 pages
Date of creation: 03 Apr 2014
Date of revision:
Contact details of provider:
Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Knowledge; neighborhood diversity; education; skills; innovation;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-11 (All new papers)
- NEP-BEC-2014-04-11 (Business Economics)
- NEP-CSE-2014-04-11 (Economics of Strategic Management)
- NEP-GEO-2014-04-11 (Economic Geography)
- NEP-GER-2014-04-11 (German Papers)
- NEP-INO-2014-04-11 (Innovation)
- NEP-KNM-2014-04-11 (Knowledge Management & Knowledge Economy)
- NEP-LMA-2014-04-11 (Labor Markets - Supply, Demand, & Wages)
- NEP-SBM-2014-04-11 (Small Business Management)
- NEP-URE-2014-04-11 (Urban & Real Estate Economics)
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