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Ethnic Innovation and U.S. Multinational Firm Activity

Author

Listed:
  • C. Fritz Foley

    () (Harvard Business School, Harvard University, Boston, Massachusetts 02163; and National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • William R. Kerr

    () (Harvard Business School, Harvard University, Boston, Massachusetts 02163; and National Bureau of Economic Research, Cambridge, Massachusetts 02138)

Abstract

This paper studies the impact that ethnic innovators have on the global activities of U.S. firms by analyzing detailed data on patent applications and on the operations of the foreign affiliates of U.S. multinational firms. The results indicate that increases in the share of a firm's innovation performed by inventors of a particular ethnicity are associated with increases in the share of that firm's affiliate activity in countries related to that ethnicity. Ethnic innovators also appear to facilitate the disintegration of innovative activity across borders and to allow U.S. multinationals to form new affiliates abroad without the support of local joint venture partners. This paper was accepted by Bruno Cassiman, business strategy.

Suggested Citation

  • C. Fritz Foley & William R. Kerr, 2013. "Ethnic Innovation and U.S. Multinational Firm Activity," Management Science, INFORMS, vol. 59(7), pages 1529-1544, July.
  • Handle: RePEc:inm:ormnsc:v:59:y:2013:i:7:p:1529-1544
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    File URL: http://dx.doi.org/10.1287/mnsc.1120.1684
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Keith McLeod & Richard Fabling & David C. Maré, 2014. "Hiring New Ideas: International Migration and Firm Innovation in New Zealand," Working Papers 14_14, Motu Economic and Public Policy Research.
    2. Sari Pekkala Kerr & William R. Kerr, 2015. "Global Collaborative Patents," NBER Working Papers 21735, National Bureau of Economic Research, Inc.
    3. William R. Kerr, 2013. "Heterogeneous Technology Diffusion and Ricardian Trade Patterns," NBER Working Papers 19657, National Bureau of Economic Research, Inc.
    4. repec:eee:jaecon:v:64:y:2017:i:2:p:346-367 is not listed on IDEAS
    5. repec:eee:respol:v:46:y:2017:i:10:p:1738-1754 is not listed on IDEAS
    6. Elisabetta Lodigiani & Luca Marchiori & I-Ling Shen, 2016. "Revisiting the Brain Drain Literature with Insights from a Dynamic General Equilibrium World Model," The World Economy, Wiley Blackwell, vol. 39(4), pages 557-573, April.
    7. repec:bla:ecopol:v:29:y:2017:i:2:p:91-117 is not listed on IDEAS
    8. William R. Kerr & William F. Lincoln & Prachi Mishra, 2014. "The Dynamics of Firm Lobbying," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 343-379, November.
    9. Garas, Antonios & Lapatinas, Athanasios & Poulios, Konstantinos, 2015. "The complex-network based relation between migration and FDI in the OECD," MPRA Paper 68341, University Library of Munich, Germany.
    10. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
    11. Kul B. Luintel & Mosahid Khan, 2017. "Ideas production and international knowledge spillovers: digging deeper into emerging countries," WIPO Economic Research Working Papers 35, World Intellectual Property Organization - Economics and Statistics Division.
    12. Luintel, Kul B. & Khan, Mosahid, 2017. "Ideas production and international knowledge spillovers: Digging deeper into emerging countries," Research Policy, Elsevier, vol. 46(10), pages 1738-1754.
    13. Hatzigeorgiou, Andreas & Karpaty, Patrik & Kneller, Richard & Lodefalk, Magnus, 2016. "Do Immigrants Spur Offshoring? Firm-Level Evidence," Working Papers 2016:7, Örebro University, School of Business.
    14. Nathan, Max, 2013. "Top team demographics, innovation and business performance: findings from English firms and cities 2008-9," LSE Research Online Documents on Economics 59250, London School of Economics and Political Science, LSE Library.
    15. Kul B Luintel & Mosahid Khan, 2017. "Ideas Production and International Knowledge Spillovers: Digging Deeper into Emerging Countries," CESifo Working Paper Series 6737, CESifo Group Munich.
    16. Ana Cuadros & Joan Martín-Montaner & Jordi Paniagua, 2017. "Migration and FDI: The role of job skills," Working Papers 2017/15, Economics Department, Universitat Jaume I, Castellón (Spain).
    17. repec:oup:jecgeo:v:17:y:2017:i:5:p:1009-1038. is not listed on IDEAS

    More about this item

    Keywords

    foreign direct investment; technology transfer; patents; innovation; research and development; ethnic networks; diasporas;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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