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Ethnic diversity in start-ups and its impact on innovation

Author

Listed:
  • Brixy, Udo

    (Institute for Employment Research (IAB), Nuremberg, Germany ; LMU)

  • Brunow, Stephan

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Bamberg)

  • D'Ambrosio, Anna

    (Polytechnic of Turin)

Abstract

"The study analyses the impact of different ethnic compositions of start-ups in Germany on the innovativeness of the new businesses. We are able to distinguish between the ethnicity of the founders and that of the early employees following new results that demonstrate the importance of including all new firms' stakeholders for the firm's success. We make use of a measure introduced by Ruef (2002) and Ruef et al. (2003) which not only takes into account the number of different ethnicities involved, but also includes the unusualness of the ethnic compositions. Our results first reveal that foreigners are an important source of both entrepreneurs and employers. Second, we can show that only really rare combinations, of the founders and employees together, lead to more innovative businesses whereas the more common minorities are even found to have a negative impact on firms' innovativeness." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Brixy, Udo & Brunow, Stephan & D'Ambrosio, Anna, 2017. "Ethnic diversity in start-ups and its impact on innovation," IAB-Discussion Paper 201725, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201725
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    References listed on IDEAS

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    2. Malgorzata Wachowska & Magdalena Homa, 2020. "The Role of Ethnic Diversity in Stimulating Innovation Processes: Comparative Analysis of Poland, the Czech Republic and Hungary," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 1157-1176.
    3. Schäffler, Johannes & Moritz, Michael, 2018. "German FDI in the Czech Republic - Employment effects in the home country," IAB-Discussion Paper 201806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Peters, Jan Cornelius, 2016. "Quantifying the effect of labor market size on learning externalities," Economics Working Papers 2016-11, Christian-Albrechts-University of Kiel, Department of Economics.
    5. Osiander, Christopher & Stephan, Gesine, 2018. "Unter welchen Bedingungen würden sich Beschäftigte weiterbilden? : Ergebnisse eines faktoriellen Surveys," IAB-Discussion Paper 201804, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Horwitz, Rachel & Brockhaus, Sarah & Henninger, Felix & Kieslich, Pascal & Schierholz, Malte & Keusch, Florian & Kreuter, Frauke, 2017. "Learning from mouse movements: Improving questionnaire and respondents' user experience through passive data collection," IAB-Discussion Paper 201734, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    8. Carbonero, Francesco & Offermanns, Christian J. & Weber, Enzo, 2017. "The fall of the labour income share: the role of technological change and imperfect labour markets," IAB-Discussion Paper 201728, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Ausländerquote ; ausländische Arbeitgeber ; ausländische Arbeitnehmer ; Auswirkungen ; Heterogenität ; Beschäftigtenstruktur ; ethnische Gruppe ; Herkunftsland ; Inländer ; Innovationsfähigkeit ; Nationalität ; Produktivitätseffekte ; Unternehmensgründung ; Unternehmer ; Arbeitsproduktivität ; 2005-2012;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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