Diversity and innovation

Bala Ramasamy (First Author), Matthew C. H. Yeung (Participant Author)

Research output: Contribution to journalJournal

3 Citations (Web of Science)


Although the effect of culture on national innovation levels is well-established, previous literature assumes cultural homogeneity within a nation. In this article we analyse two aspects of diversity – ethnic and values – and their impact on national innovation output. We show that ethnic diversity or fractionalization and values diversity are distinct and while the former has a negative effect on innovation, the latter contributes positively. However, countries are bound to have both types of diversity. We find that countries that are ethnically homogenous but diverse in values orientation are the best innovators.
Original languageEnglish
Pages (from-to)1037-1041
JournalApplied Economics Letters
Issue number14
Publication statusPublished - 2016

Corresponding author email



  • Ethnic diversity
  • fractionalization
  • innovation
  • values diversity

Indexed by

  • ABDC-B
  • Scopus
  • SSCI


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