Human Capital Diversity and Product Innovation: A Micro-Level Analysis
The paper investigates the relationship between human capital diversity measured in terms of occupational diversity and a firm's likelihood to innovate. The empirical analysis is based on a linked employer-employee panel dataset of German firms over the period 1998 to 2007. Despite notable differences between service and manufacturing firms, our results clearly indicate a positive relationship between occupational diversity and the propensity to innovate.
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