Chapter 10: Establishments’ cultural diversity and innovation: evidence from Germany
In the course of technological progress, industrialised countries have been undergoing a severe structural change, from largely service-based to increasingly knowledge-based economies. This coincides with the continued globalisation of markets and production processes. In this context, the European Union (EU) has liberalised labour mobility sequentially, as one of several means to ‘become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth’ (European Council, 2000). Immigration is thus supposed to foster economic growth and prosperity. Therefore, the impact of immigration on the economy has become an important research field, the so-called migrant impact analysis (MIA, see Nijkamp et al., 2012). MIA aims to identify positive and negative effects of immigration in a wide range of fields. One of these is the impact of immigration on economic performance and innovation. Private firms’ innovation is the source of sustained growth (Romer, 1990) and is an important indicator of economic performance in a knowledge-based economy. Empirical evidence on innovation in the US provides evidence of a positive impact from the specific characteristics of immigrants (Hunt and Gauthier-Loiselle, 2010; Kerr and Lincoln, 2010).
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