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Firm Knowledge, Neighborhood Diversity and Innovation

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  • Wixe, Sofia

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School,)

Abstract

This paper tests the importance of firm level knowledge and neighborhood diversity, as a source for localized knowledge spillovers, on firms propensity to innovate. Diversity is measured in terms of industries as well as employee education and occupation, of which the results show a positive neighborhood effect from diversity in education. In addition, an added positive effect from neighborhood diversity in education is found for firms with a larger share of highly educated employees, which points to the importance of absorptive capacity. However, firm characteristics, such as the knowledge of the own employees, provide to be the strongest determinants for the innovativeness of firms.

Suggested Citation

  • Wixe, Sofia, 2014. "Firm Knowledge, Neighborhood Diversity and Innovation," Working Paper Series in Economics and Institutions of Innovation 360, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0360
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    Cited by:

    1. Lina Bjerke & Sara Johansson, 2015. "Patterns of innovation and collaboration in small and large firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 221-247, October.

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    More about this item

    Keywords

    Knowledge; neighborhood diversity; education; skills; innovation;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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