NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Ethnic Innovation and U.S. Multinational Firm Activity

C. Fritz Foley, William R. Kerr

NBER Working Paper No. 17336
Issued in August 2011
NBER Program(s):   ITI   LS   PR

This paper studies the impact that immigrant innovators have on the global activities of U.S. firms by analyzing detailed data on patent applications and on the operations of the foreign affiliates of U.S. multinational firms. The results indicate that increases in the share of a firm's innovation performed by inventors of a particular ethnicity are associated with increases in the share of that firm's affiliate activity in their native countries. Ethnic innovators also appear to facilitate the disintegration of innovative activity across borders and to allow U.S. multinationals to form new affiliates abroad without the support of local joint venture partners. Thus, this paper points out that immigration can enhance the competitiveness of multinational firms.

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Document Object Identifier (DOI): 10.3386/w17336

Published: With William R. Kerr, “Ethnic Innovation and U.S. Multinational Activity,” Management Science , Vol. 59, No. 7, pp. 1529-1544, 2013.

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