The Economics of Cultural Diversity
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The Economics of Cultural Diversity

Edited by Peter Nijkamp, Jacques Poot and Jessie Bakens

The populations of many countries in the world are becoming more culturally diverse. This spurs a growing need for an informed debate on the socio-economic implications of cultural diversity. This book offers a solid statistical and econometric perspective on this topical subject by bringing together studies from different countries in Europe and North America. The research in this volume sheds light on several consequences of cultural diversity, including positive impacts on innovation, growth and entrepreneurship, with contributions highlighting how there can be negative social effects on communities. Throughout the volume, it is evident that the effects of cultural diversity on socio-economic outcomes depend largely on the characteristics of local economies, populations and communities.
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Chapter 10: Establishments’ cultural diversity and innovation: evidence from Germany

Stephan Brunow and Bastian Stockinger


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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