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Neighbourhood related diversity, human capital and firm innovation
Author(s) -
Wixe Sofia
Publication year - 2018
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12255
Subject(s) - human capital , entrepreneurship , ping (video games) , diversity (politics) , citation , political science , library science , business , economics , economic growth , finance , law , computer security , computer science
In this paper the importance of neighbourhood related diversity and firm human capital for firms' propensity to innovate is tested. Neighbourhood diversity is treated as a source of localized knowledge spillovers, that is, Jacobs' externalities, where diversity is measured in terms of industries and employee education. The results show that firms in metropolitan regions benefit from related industry diversity while service sector firms in rural regions are more innovative in neighbourhoods with more related diversity in education. Firm characteristics such as education and skills among the employees provide to be strong determinants of firm innovativeness, especially for firms outside metropolitan regions.