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Knowledge workers, cultural diversity and innovation: evidence from London

Author

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  • Neil Lee
  • Max Nathan

Abstract

London is one of the world's major cities and one of its most culturally diverse. A number of studies link diverse workforces and populations to levels of urban innovation, especially in global cities. While widely explored as a social phenomenon, there has been little work on the importance of London's diversity for the city's businesses. This paper uses the 2007 London Annual Business Survey to investigate, exploiting the survey's unique coverage of both workforce composition and innovation outcomes. From a cross-section of over 2300 firms, we find significant positive relationships between workforce and ownership diversity, and product and process innovation. These provide some support for claims that London's cultural diversity is a source of economic strength.

Suggested Citation

  • Neil Lee & Max Nathan, 2010. "Knowledge workers, cultural diversity and innovation: evidence from London," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 1(1/2), pages 53-78.
    • Handle: RePEc:ids:ijkbde:v:1:y:2010:i:1/2:p:53-78
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    Citations

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    Cited by:

    1. Jana Schmutzler & Edward Lorenz, 2018. "Tolerance, agglomeration, and enterprise innovation performance: a multilevel analysis of Latin American regions," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 243-268.
    2. Zuzana Potužáková & Jan Öhm, 2020. "Internationalization, the Highly Qualified and the Innovation Output," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 219-228.
    3. Marte C. W. Solheim & Rune Dahl Fitjar, 2018. "Foreign Workers Are Associated with Innovation, But Why? International Networks as a Mechanism," International Regional Science Review, , vol. 41(3), pages 311-334, May.
    4. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2011. "The Impact of Cultural Diversity on Innovation: Evidence from Dutch Firm-Level Data," IZA Discussion Papers 6000, Institute of Labor Economics (IZA).
    5. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2015. "Cultural diversity and plant-level productivity," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 85-96.
    6. Simona Iammarino & Andrés Rodriguez-Pose & Michael Storper, 2019. "Regional inequality in Europe: evidence, theory and policy implications," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 273-298.
    7. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2013. "Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch firms," Norface Discussion Paper Series 2013003, Norface Research Programme on Migration, Department of Economics, University College London.
    8. Kristoffer Moeller, 2013. "Culturally clustered or in the cloud? Location of internet start-ups in Berlin," ERSA conference papers ersa13p455, European Regional Science Association.
    9. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2017. "The elusive effects of workplace diversity on innovation," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 29-49, March.
    10. Neil Lee & Andrés Rodríguez-Pose, 2013. "Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1742-1759, July.
    11. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series 2013022, Norface Research Programme on Migration, Department of Economics, University College London.
    12. Uwe Blien & Linda Borrs & Jens Südekum & Katja Wolf, 2014. "Local Labour Markets and Cultural Diversity," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(2), pages 27-34, 07.
    13. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    14. Rashidi, Sheida & Pyka, Andreas, 2013. "Migration and innovation: A survey," FZID Discussion Papers 77-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    15. repec:ces:ifodic:v:12:y:2014:i:2:p:19116211 is not listed on IDEAS
    16. Fumihiko Isada & Yuriko Isada, 2015. "Trans-nationalisation of a main office in a multinational firm," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(4), pages 15-40, November.
    17. Uwe Blien & Linda Borrs & Jens Südekum & Katja Wolf, 2014. "Local Labour Markets and Cultural Diversity," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 27-34, July.
    18. Stephen Syrett & Leandro Sepulveda, 2011. "Realising the Diversity Dividend: Population Diversity and Urban Economic Development," Environment and Planning A, , vol. 43(2), pages 487-504, February.

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