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We investigate econometrically whether cultural diversity at the workplace boosts innovation. Our longitudinal linked employer‐employee data combines two innovation surveys, with Dutch administrative, tax and regional data. We analyse the determinants of a firm's product and process innovations with respect to the firm's internal resources, employee composition and regional agglomeration externalities...
The development of new industries demands access to local capabilities. Little attention has yet been paid to the role of spillovers from neighbour regions for industrial diversification, nor has the role of network linkages between neighbour regions been investigated. As the spread of capabilities has a strong geographical bias, we expect regions to develop new industries in which their neighbour...
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